What are taxes collected on specific products such as tobacco and gasoline called?Group of answer choicesluxury taxexcise taxincome taxad valorem tax

Break Down the Problem

1. Identify the types of taxes mentioned in the options provided.
2. Determine which of the options fits the description of taxes collected on specific products.

Relevant Concepts

1. Luxury Tax: Typically applied to non-essential items that are deemed expensive or luxurious.
2. Excise Tax: A tax charged on specific goods and services, often included in the price of the product, such as tobacco and gasoline.
3. Income Tax: A tax based on the income of individuals or corporations, unrelated to the sale of specific goods.
4. Ad Valorem Tax: A tax based on the assessed value of an item, often used in property taxes.

Analysis and Detail

• The question specifically mentions taxes that are associated with particular products like tobacco and gasoline.
• Excise taxes are imposed on the sale, production, or consumption of specific goods, and the taxes do vary from one product to another. This aligns with the question's focus on particular items.

Verify and Summarize

• Based on the definitions, excise tax is the most appropriate response as it is specifically aimed at certain goods like tobacco and gasoline.

Final Answer

Excise tax is the correct answer.