Why does an excise tax on gasoline exist? Check all that apply.

A make gasoline prices more competitive

B to provide funding for healthcare and education

C to discourage travel by automobile by making gasoline more expensive

D to fund highway repairs and other special projects

E to discourage the use of alternative modes of transportation

Took the test and had marked B C and D And they said incorrect. What should I remove?

Answer: A. make gasoline prices more competitive and C. to discourage travel by automobile by making gasoline more expensive

Excise taxes are most often placed upon alcohol. cigarettes, and gambling which is often considered unnecessary goods and services. To raise taxes on them means to raise their prices and at the same time to reduce the amount they are used.

Excise taxes are sometimes called the "sin taxes."

Excise taxes are also paid on gasoline. Excise taxes increase the price of gasoline thus discouraging travel by automobile and encourage the use of alternative modes of transportation which is cheaper. It also makes gasoline prices more competitive.