A(n) _______________ tax is a tax on a specific kind of merchandise, such as tobacco.

Question

Quizplus · Accepted Answer

An excise tax is a tax on a specific good or service, often referred to as a "sin tax" when it applies to items such as tobacco, alcohol, and gasoline. It is not a flat tax, which is a tax that applies at the same rate to all taxpayers, nor is it a progressive tax, which is a tax that takes a larger percentage from high-income taxpayers. It is also not a property tax, which is a tax on ownership of real or personal property, or an import tax, which is a tax on goods imported into a country.

A(n) _______________ Tax Is a Tax on a Specific Kind