Question

Janette wants to take her family on a vacation to Orlando, Florida, where she expects to rent a car. The tax imposed on gasoline and airline travel is what type of tax?

Answer 1

The tax imposed on gasoline and airline travel is a form of excise tax. Excise taxes are levied on specific products and serve to raise revenue and discourage consumption.

Step-by-step explanation:

Excise taxes are taxes imposed on specific goods or services, often at the time of purchase. They are indirect taxes that are included in the price of the product, and consumers usually pay them without direct awareness of the amount.

The tax imposed on gasoline and airline travel is a form of excise tax. Excise taxes are levied on specific products, such as gasoline, alcohol, tobacco, and air travel. They are typically included in the price of the product and paid by consumers when purchasing it. Excise taxes serve two main purposes: to raise revenue for the government and to discourage the consumption of certain goods or activities.