Which is the most accurate statement?

A) The cigarette tax is progressive.
B) Gasoline taxes in the U.S.are higher than in most other industrial countries.
C) The taxes on cigarettes and gasoline are excise taxes.
D) The corporate income tax is the federal government's largest source of tax revenue.

Excise Taxes

Taxes paid on specific goods and services, such as tobacco and fuel, intended to raise revenue and discourage consumption of these items.

Progressive

relates to a taxation system where the tax rate increases as the taxable base amount increases, often aimed at redistributing income to achieve a more equitable society.

Corporate Income Tax

A tax imposed on the net income of corporations, calculated on the basis of the business's profit, contributing to government revenues.