Which tax is specifically associated with luxury items such as gasoline and cigarettes?

The correct answer is excise tax because this type of tax is specifically levied on certain goods and services, particularly those that are considered non-essential or luxury items. This includes products like gasoline, cigarettes, and alcoholic beverages. The purpose of an excise tax often extends beyond merely generating revenue; it can also be used as a means to discourage the consumption of certain goods that may have negative social or health impacts. For example, taxing cigarettes aims to reduce smoking rates and promote public health.

In contrast, income tax is assessed on an individual's or corporation's earnings, sales tax is applied to most retail sales of goods and services, and property tax is based on the real estate owned. These other taxes do not target specific luxury items in the same manner that excise taxes do. Thus, excise tax stands out as the specific tax associated with luxury or harmful items.