Final answer:
The gas-guzzler tax is an example of an excise tax designed to discourage the consumption of fuel-inefficient vehicles and reduce air pollution.
Step-by-step explanation:
The imposition of a gas-guzzler tax on newly purchased vehicles with low fuel efficiency exemplifies an excise tax, a specific type of levy placed on particular goods. This taxation approach extends beyond fuel-efficient cars to include products like gasoline, aiming to discourage consumption by addressing the adverse impacts associated with certain goods, such as air pollution. Essentially, excise taxes operate as a tool to influence consumer behavior in favor of more environmentally sustainable choices.
Moreover, excise taxes function as a form of pollution charge, incorporating an economic dimension to discourage activities that contribute to environmental harm. In the case of the gas-guzzler tax, it not only discourages the purchase of fuel-inefficient vehicles but also generates revenue. The revenue generated from excise taxes can be channeled into government programs, notably those dedicated to infrastructure maintenance, like roads.
While the gas-guzzler tax is an environmental policy in the United States, it's worth noting that excise taxes with environmental objectives often carry higher rates in many other countries. This reflects a global trend towards using fiscal measures to address environmental concerns, promoting sustainability, and supporting initiatives that benefit both the environment and public welfare.