Question

______________ ________________ are indirect taxes - not paid directly to the government - that result from a tax advantage the government grants to certain transactions to satisfy social, economic, or other objectives. Defined as the reduced before-tax return that a tax-favored asset produces because of its tax-advantaged status.

A) Excise Taxes
B) Sin Taxes
C) Tax Credits
D) Tax Incentives

Answer 1

Excise taxes are indirect taxes imposed on specific goods or services to satisfy social, economic, or other objectives. They can be used to discourage consumption or raise revenue. Examples include gasoline tax, cigarette tax, and beer and liquor tax.

Step-by-step explanation:

Excise taxes are indirect taxes - not paid directly to the government - that result from a tax advantage the government grants to certain transactions to satisfy social, economic, or other objectives. An excise tax is imposed on specific goods or services. They can be used to discourage consumption of a product or to raise revenue on products that the government knows people will continue to purchase, regardless of the tax. Examples of excise taxes include gasoline tax, cigarette tax, and beer and liquor tax.They can be used to discourage consumption or raise revenue. Examples include gasoline tax, cigarette tax, and beer and liquor tax.