Earmarked taxes are:
A)taxes assessed only on certain taxpayers.
B)taxes assessed to fund a specific purpose.
C)taxes assessed for only a specific time period.
D)taxes assessed to discourage less desirable behavior.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Earmarked taxes are taxes assessed to fund a specific purpose. For example, a state may impose a hotel tax to fund tourism programs or a gasoline tax to fund road construction and repair. The revenue from earmarked taxes is typically deposited into a special fund and can only be spent for the designated purpose.

Earmarked Taxes Are