Question

For which of the following would not expect to pay an excise tax?

Answer 1

D. groceries. Just took the test.

Answer 2

The correct answer is:

d. groceries

Explanation:

This is because excise taxes are commonly levied on enterprises or good that are deemed useless or even harmful, such as cigarettes. Thus, the tax acts as a restraint to people acquiring these goods or services. Clearly, groceries are important for endurance and are not worthless or dangerous.