Which tax is an example of a tax on consumption?
A) capital gains tax
B) individual income tax
C) property tax
D) excise tax

Question

Quizplus · Accepted Answer

An excise tax is a tax on a specific good or service, which is an example of a tax on consumption. Capital gains tax is a tax on the profit made from selling an asset, individual income tax is based on an individual's earnings, and property tax is based on the value of owned property, none of which are strictly taxes on consumption.

Which Tax Is an Example of a Tax on Consumption