Which statement is true regarding excise taxes, such as those on tobacco, alcohol, and gasoline?

Excise taxes, such as those imposed on tobacco, alcohol, and gasoline, tend to be highly regressive because they take a larger percentage of income from lower-income individuals compared to higher-income individuals.

A regressive tax structure means that as a person's income decreases, the burden of the tax increases relative to their overall financial situation. Since excise taxes are levied on specific goods regardless of the purchaser's income, lower-income individuals often spend a higher proportion of their income on these goods compared to wealthier individuals. For example, a flat tax on a pack of cigarettes affects someone who earns $20,000 per year more severely than it does someone who earns $200,000 per year, as the tax represents a larger share of the lower earner's total income.

The other options do not accurately describe the nature of excise taxes. They are not based on income levels, as they apply uniformly regardless of an individual's earnings. They also do not apply to all goods equally; excise taxes are specific to certain products and industries. Additionally, they are not progressive, as progressive taxes increase in burden as an individual's income increases, which contrasts with the concept of excise tax as regressive.