Asked by Michelle Sutton on May 25, 2024
Verified
The excise tax on gasoline is
A) a direct tax.
B) an indirect tax.
C) a direct tax and an indirect tax.
D) neither a direct tax nor an indirect tax.
Excise Tax
A tax charged on specific goods and services, such as alcohol and tobacco, usually to discourage their use or generate revenue.
Direct Tax
A tax levied directly on an individual or an organization's income or wealth, such as income tax or property tax.
- Comprehend the differences and categories of taxes, including direct versus indirect and progressive versus regressive.
Verified Answer
RC
Rebekah CurryMay 25, 2024
Final Answer :
B
Explanation :
An excise tax on gasoline is an indirect tax because it is levied on the sale of gasoline, rather than directly on the consumer or producer. The tax is included in the price of gasoline, so consumers end up paying the tax indirectly when they purchase gasoline.
Learning Objectives
- Comprehend the differences and categories of taxes, including direct versus indirect and progressive versus regressive.