Both the federal government and many states impose so-called sin taxes: excise taxes levied on the retail sale of liquor and cigarettes. Discuss the reasons why sales of these particular items make a good tax base.
Excise tax is one of the types of taxes that are levied over the selling of some products, goods, and services, like fuel, tobacco, alcohol, and other related items. It is applied by the federal government or the state government accordingly.
Answer and Explanation: 1
The items such as liquor and cigarettes contain a high amount of taxes in their prices. The taxes which are levied on them are known as the sin taxes....
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fromChapter 7 / Lesson 11
Discover sin tax. Learn what sin tax is by reading the sin tax definition. Explore the main purpose of sin tax, sin tax examples, and pros and cons of sin tax.