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> excess taxes on gambling and tobacco You may be mishearing the term "excise tax". An excise tax is a tax on any specific good, such as tobacco or gasoline.
by daveguy 10y ago
> excess taxes on gambling and tobacco
You may be mishearing the term "excise tax". An excise tax is a tax on any specific good, such as tobacco or gasoline. Those taxes are included in the cost of the good (it just costs more at the pump or on the shelf). Yes, they are typically used to reduce consumption, or to pay for costs associated with consumption (eg roads).
- will_pseudonym 10y agoI'm aware of what excise taxes are, but I see why it might seem like that's what I meant, because I wasn't really explaining what I meant by that phrase. By "excess tax", I mean taxes in excess of the cost of the behavior they're trying to regulate. Both of these examples are both excise taxes, the rates of which are in excess of the costs borne to society of those activities.