Question

An excise tax is a tax paid on

A) earned income.
B) dividends and interest
C) assets of someone who has died.
D) use and consumption of certain goods.

Answer 1

The answer would be d

Answer 2

The correct answer is: D) use and consumption of certain goods.

Excise Taxes are paid on the use or consumption or certain goods. Gasoline excise tax is a classic example.