Final answer:
An excise tax is added to the price of goods like alcohol and gasoline, intended to either discourage consumption or raise revenue; for example, gasoline and cigarette taxes.
Step-by-step explanation:
The tax added to the price of certain items like alcohol, gasoline, or fishing equipment is known as an excise tax. Excise taxes are specifically levied on the manufacture, sale, or consumption of these goods. The purpose of excise taxes can be to deter consumption of certain products, such as alcoholic beverages and tobacco, or to generate revenue from products that are commonly used and thus provide a steady income for the government.
Notable examples of excise taxes include the gasoline tax, cigarette tax, and taxes on beer and liquor. Holding significant importance in the United States, excise taxes are also used to fund specific services, such as Social Security and Medicare through the excise payroll tax.