An excise tax is
A)levied on accounting profits not economic profits.
B)levied on salaries and wages but not investment income.
C)levied on the purchase of specific goods.
D)levied on purchases of goods in general excluding exempted goods that are considered necessities.

Question

Quizplus · Accepted Answer

Excise tax is a tax levied on specific goods, such as gasoline, alcohol, cigarettes, or luxury items. It is not a tax on accounting profits or salaries and wages, and it does not exclude exempted goods that are considered necessities.

An Excise Tax Is