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The federal Alcohol and Tobacco Tax and Trade Bureau (TTB) is involved in alcohol production and taxation of tobacco.

A. True
B. False

1 Answer

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Final answer:

The Alcohol and Tobacco Tax and Trade Bureau (TTB) does indeed handle alcohol production oversight and the taxation of tobacco, which is true. Excise taxes on these substances are seen as regressive due to their disproportionate financial impact on lower-income individuals. Additionally, the temperance movement was partly a response to urbanization and immigration.

Step-by-step explanation:

The statement that the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) is involved in alcohol production and the taxation of tobacco is True. The TTB is responsible for enforcing federal laws concerning the production, use, and distribution of alcohol and tobacco products. They also collect taxes on these items, which are known as excise taxes.

Excise taxes, specifically those on tobacco and alcohol, as well as state sales taxes, are often referred to as regressive because these taxes take a larger percentage of income from low-income individuals than from those with higher incomes. This is due to the fact that the tax is a fixed amount per item or percentage of the sale price, regardless of the buyer's income. Consequently, lower-income individuals end up paying a higher proportion of their income on these goods compared to wealthier individuals.

Historically, temperance movements have arisen in response to social conditions like urbanization and immigration. This is True because such socio-economic changes often led to increased consumption of alcohol, contributing to various social issues that temperance advocates aimed to address.

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