What Is Excise Tax ?
Excise taxes very much similar to a sales tax are collected from the merchants and are subsequently handed over to the government. This type of tax collection is considered to be a minor source of income for the government. Unlike income taxes, which are levied from the consumers directly, an excise tax is framed in such a manner that it gets amalgamated in the price of the product in a way that it becomes hidden for the consumers and ultimately is a burden on them.
Excise taxes are levied on manufacture and sale of particular types of products. A common example of an excise tax is the supplementary tax that most of the nation’s government levies on alcohol. The reasons for a nation to order excise taxes varies. Generally there are two basic aims of levying excise taxes one is to raise additional funds for the government so, that it can engage this fund in reforms and the other most prominent reason is to curtail the use of certain products which could be harmful for the society.More...
Guide To Excise Tax
An excise tax is comparatively a trivial source of revenue for the government. These are applicable to certain products and events that are exercised by various business companies. Excise taxes are supposed to be a form of taxation that are charged tactfully which means the government does not attach them right away.
The manufacturer or the merchant selling the particular product is required to pay the taxes to the government. There are normally two ways in which these taxes are charged one is by putting a fixed percentage on a certain type of product and another is by imposing a fixed amount of dollar depending on the bulk of a product purchased.More...
Federal Tobacco And Excise Tax
In the United States economy the product which has been labeled with the highest tax is none other but Tobacco. A conglomeration of federal, State and the local taxes on cigarettes converts the sale price into a form which at the end pinches the consumers who purchase them.
An ever increasing price of cigarettes is giving rise to many malpractices and as a result there are outlets which are selling them illegally at lower prices. On top of it, an increase in the federal excise tax on tobacco will further increase crime in the retail outlets. These outlets are subjected to robbery more often because of a dramatic hike in the rates of cigarettes in the recent years.More...
Excise Tax On Health Care
The aim of an excise tax on health care is to restructure the health care industries. Its basic idea is to help in financing the health care. The best thing about this plan is that it estimates a round about $150 billion in approximately 10 years. The plan says that the tax would be given by the employers, insurance companies and the people who belong to higher income group category. A proposal like this intends to twist the bob of the cost pendulum in such a manner that in future it would help in bringing stability.More...