Excise taxes are levied on many different products for several different reasons. What is the purpose of an excise tax? Is there more than one reason that excise taxes are levied? Upon what products are excise taxes levied? Does levying the tax on these specific goods achieve the desired goal?
The article Excise Taxes on New Cars discusses two different excise taxes that are levied on new automobiles.
 
 
 
 
Drivers must purchase gasoline in order to drive their automobiles. The federal government as well as state governments levy excise taxes on this petroleum product. According to the article The Federal Excise Tax on Gasoline and the Highway Trust Fund: A Short History 
 
 
 
 
 
 
Government also levies excise taxes on tobacco products. According to TOBACCO EXCISE TAXES what benefit(s) will be derived from levying an excise tax on tobacco products? 
Do you believe the excise tax is achieving the desired result? Why or why not? 
As with gasoline taxes, states levy their own excise tax on tobacco products. According to STATE EXCISE TAX RATES ON CIGARETTES:
 
 
 
 
Finally, government levies taxes on alcoholic beverages. Although the History of Federal Excise Taxes on Beer web page is sponsored by a decidedly biased source, when were excise taxes originally placed on beer? Why? Do you believe this is the same reason excise taxes are levied on alcoholic products today? Why or why not? 
According to the companion web page The Tax Burden on America's Beer Drinkers what portion of the retail price of beer is represented by taxes? In comparison, what portion of the retail price of other products is represented by taxes? Why do you think this is the case? 
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Last updated February 10, 2001
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