A tax imposed with the intent of exerting social or economic control by reducing taxes on approved behaviors or imposing higher taxes on undesirable activities is
A)a broad-based tax.
B)regulatory tax.
C)tax rate.
D)tax base.

Question

Quizplus · Accepted Answer

A tax imposed with the intent of exerting social or economic control is known as a regulatory tax. It is designed to discourage or encourage certain behaviors by manipulating taxes. It is also known as a sin tax. Other examples of regulatory tax include the taxes on cigarettes, alcohol, and gasoline.

A Tax Imposed with the Intent of Exerting Social or Economic