Which of the following is an example of an excise tax?
A)a tax on the wages that a firm pays its workers
B)a tax on tobacco
C)a tax on corporate profits
D)the portion of federal income taxes earmarked to pay for Social Security and Medicare

Question

Quizplus · Accepted Answer

An excise tax is a tax on a specific good or service, such as tobacco, gasoline, or alcohol. Taxes on wages, corporate profits, and income earmarked for specific programs (like Social Security and Medicare) are not examples of excise taxes.

Which of the Following Is an Example of an Excise