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 that are assessed to fund a specific purpose. The revenue generated from these taxes is designated for a particular program or project, rather than being added to a general fund. This provides greater accountability and transparency in government spending, as taxpayers can see exactly where their money is going.

Earmarked Taxes Are