Asked by
Claire Carlson
on Nov 26, 2024
Verified
The main difference between sales and excise taxes is that
A) sales taxes apply to a wide range of products, while excise taxes apply only to a select group of products.
B) excise taxes apply to a wide range of products, while sales taxes apply only to a select list of products.
C) sales taxes are consumption taxes, while excise taxes are not.
D) excise taxes are consumption taxes, while sales taxes are not.
Sales Tax
A tax levied by a government on the sale of goods and services, typically calculated as a percentage of the selling price.
Excise Taxes
Taxes imposed on specific goods, services, or activities, often used to discourage consumption of certain items or to raise revenue for targeted purposes.
Consumption Taxes
Taxes imposed on spending on goods and services, such as sales tax or Value Added Tax (VAT).
- Differentiate among various categories of taxes, including income, sales, and excise taxes.
Verified Answer
RS
Learning Objectives
- Differentiate among various categories of taxes, including income, sales, and excise taxes.