Question

Which statement is true?

a. None of these is true.

b. The cigarette tax is an excise tax.

c. The federal personal income tax is a proportional tax.

d. The tax on gasoline is a direct tax.

Answer 1

Solution:

From all of the above statement b. The cigarette tax is an excise tax is the only True statement.

Reason:

Excise Tax are taxes paid when purchases are made on specific goods and is often included in the price of the product. and Certain good items like Gasoline and cigarette are taxed when purchased.

Therefore, B option is the right and True option.

And because Gasoline is Excise tax it cannot be Direct Tax. Therefore, Option D is False.

And the Option C - The federal personal income tax is a proportional tax is also False Because, Proportional Tax is a tax of same percentage from all the taxable income. And Personal Income tax is cannot be Same form all the Individual. Personal Income tax is a Progressive tax that assumes a regressive nature at high tax rates.

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