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Definition: A tax on particular things such as liquor, tobacco, gambling, and gasoline. These taxes are commonly referred to as "sin taxes."
StockJargon Advice: Excise taxes serve two major purposes: raising federal revenues and discouraging the use of a particular good. People argue whether or not the government should issue excise taxes because it means they're infringing on civil liberties.
Excise taxes are the reason liquor, tobacco, and gasoline costs what it costs. Without excise taxes, these would all be cheaper.
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