Final answer:
Excise taxes are specific taxes placed on goods like gasoline, cigarettes, and liquor, which are used to generate revenue or discourage consumption. They are considered regressive because they take up a larger proportion of lower-income earners' budgets compared to higher-income individuals.
Step-by-step explanation:
Gasoline, liquor, cigarettes, and cellular service are often targeted for excise taxes because they are products that the government can easily tax to generate revenue. Products like cigarettes and alcohol can also be discouraged through these taxes. An excise tax is a tax placed on a specific good, such as gasoline, which funds services like highway maintenance, or on demerit goods like cigarettes and liquor to discourage consumption due to their health impacts. Moreover, excise taxes also exhibit a regressive quality because the tax rate does not increase with income, meaning that all individuals pay the same rate regardless of their earnings. This can lead to a higher proportion of income being spent on these taxes by lower-income earners in comparison to those with higher incomes.