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 these

Question

Quizplus · Accepted Answer

Earmarked taxes are taxes that are assessed for a specific purpose, such as funding a particular program or project. These taxes are often seen as a way to ensure that the revenues collected are dedicated to a particular cause, rather than being pooled into general funds and potentially used for other purposes.

Earmarked Taxes Are