Question

In addition to tax income for the government, what other purpose do excise taxes have? They are often used to punish firms for overpricing. They are often used to discourage the purchase of products. They are often used to discourage the purchase of imported goods. They are often used to force firms to improve the quality of their products.

Answer 1

Excise taxes are inland taxes as opposed to border taxes, meaning they deal mainly with domestic goods and services. They are often "used to discourage the purchase of products" such as cigarettes and alcohol.

Answer 2

Excise taxes are often used to discourage the purchase of products.

Step-by-step explanation:

Excise taxes, sometimes called "sin taxes," are a special type of tax that are put on items that are considered unnecessary. Some examples of these items include cigarettes, alcohol, gasoline, and gambling. The hope is that by raising the price of these items, that people will be less included to buy them.