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Jul-2021

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Excise Taxes

Excise taxes are governmental levies on specific goods produced and consumed inside a country. They differ from tariffs, which usually apply only to foreign-made goods, and from sales taxes, which typically apply to all commodities other than those specifically exempted. In their modern farm, excise taxes were first developed by Holland in the 17th century, and established by law in England in 1643. Introduced into the Dutch colonies in America, the system spread to other colonies. Such taxes were first used by the federal government in 1791 and aroused great opposition. They were repealed (1802) in Thomas Jefferson's administration. During the War of 1812 comprehensive excise taxes were levied again but were repealed in 1817.

According to this text, how do excise taxes usually differ from tariffs?

a) Excise taxes are levied on all products, while tariffs apply to government-made goods.b) Excise taxes are levied on specifically identified commodities, while tariffs apply to all goods.c) Excise taxes are levied on goods produced and consumed in one country, while tariffs apply to imports.d) Excise taxes are levied on goods to which sales tax does not apply, while tariffs only apply to goods With sales tax imposed.

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