Which statement is true?

A) The Social Security tax is progressive.
B) An excise tax on cigarettes is regressive.
C) A sales tax is a direct tax.
D) None is true.

Excise Tax

A tax imposed on specific goods, services, and activities, such as gasoline, alcohol, and tobacco, often included in the purchase price, used by governments to generate revenue or discourage consumption.

Regressive

A term especially used in taxation to describe a situation where the tax rate decreases as the amount subject to taxation increases.

Progressive

A political and social philosophy advocating for reforms and changes that aim to address inequality and improve the social welfare of the population.