why is exise tax so high?
Answers
Answer:
An excise tax is based strictly on quantity - the consumer pays a flat amount per item. Excise taxes started out historically as luxury taxes. The very first two excise taxes in the United States were taxes on carriages and on whiskey. A telephone excise tax started as a luxury tax; so did gasoline.
Answer:
A sales tax is an ad valorem tax — a percent of the price of the item is tacked on when the consumer buys the item. An excise tax is based strictly on quantity — the consumer pays a flat amount per item.
Excise taxes started out historically as luxury taxes. The very first two excise taxes in the United States were taxes on carriages and on whiskey. A telephone excise tax started as a luxury tax; so did gasoline. In our country, things that start out as luxuries come to be enjoyed by most people.