Economy, asked by yaswanthatc780, 1 year ago

The best socio economic justification for imposing income tax is

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Answered by Rajeshkumare
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An excise tax is an indirect tax on the sale of a particular good or service such as fuel, tobacco and alcohol. Indirect means the tax is not directly paid by an individual consumer — instead, the Internal Revenue Service (IRS)levies the tax on the producer or merchant, who passes it onto the consumer by including it in the product's price.

Excise Tax

BREAKING DOWN Excise Tax

Excise taxes are imposed by all levels of government — federal, state and municipal. These taxes fall into one of two categories: ad valorem and specific. Ad valorem excise taxes are fixed percentage rates assessed on particular goods or services. Specific taxes are fixed dollar amounts applied to certain purchases. In some cases, governments levy excise taxes on goods that have a high social cost, such as cigarettes and alcohol, and for this reason, these taxes are sometimes called sin taxes. 

An excise tax also refers to penalty taxation for ineligible transactions in retirement accounts

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