Excise Taxes
Definition
Excise taxes are taxes imposed on specific goods or services, such as alcohol, tobacco, or gasoline. They are typically included in the price of the product and paid by consumers.
Analogy
Excise taxes can be compared to a surcharge added to certain items at a store. Just like how you might pay an extra fee for a premium feature on a video game, excise taxes add an additional cost to specific products.
Related terms
Sin Taxes: These are excise taxes specifically imposed on goods that are considered harmful or socially undesirable, such as cigarettes or sugary drinks.
Luxury Taxes: These are excise taxes levied on high-end or luxury goods, like expensive cars or jewelry.
Gasoline Tax: This is a type of excise tax applied to fuel purchases and is used to fund transportation infrastructure projects.
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