What are the advantages and disadvantages of excise tax?
An excise tax, sometimes referred to as a sin tax, are taxes that are imposed on specific goods when they are purchased. They are often levied on products like cigarettes, alcohol, gasoline, and gambling. These taxes are also often already included in the overall price of the product being bought. Thus when the excise tax is increased, the overall price will increase in relativity to the tax. An advantages to the excise tax are that they are often raised to discourage against "sinful" activities such as drinking, smoking, and gambling. Raising the price would cause people to do such things less as they don't want to spend too much money. A disadvantage would be the raising of gas prices. People do not like high gas prices, and since it is necessary for us to drive, it makes the excise tax a problem.