Question

Lance is identifying the different types of taxes he pays every day. He wants to know more about the tax that he pays when he buys gasoline. Which tax category does this tax belong to and what does the government do with these funds? The gasoline tax is a/an tax. These tax funds are allocated to government programs like the Trust Fund.

Answer 1

A fuel tax is an excise tax imposed on the sale of fuel. An excise tax, on the other hand, are taxes paid when specific goods are bought, examples are alcohol, cigarettes, gasoline, and gambling etc. Fuel taxes are often considered to be regressive taxes.

What does the government do with these funds?

What each countries government do with fuel tax differ from one another, for example, federal gas tax in America goes into the Highway Trust Fund, the funds generatd are then used to finance most federal government spending for highways and mass transit.

In Canada, a Gas Tax Fund (GTF) was launched in 2015, the aim was to provide a portion of fuel tax to provinces and territories for infrastructural development.

Answer 2

Answer: The gasoline tax is a/an excise tax. These tax funds are allocated to government programs like the Highway Trust Fund.

Step-by-step explanation:

I got it right that all ya need to know :)