bbmeeler bbmeeler

13-01-2018
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A state decides that it wants to implement an excise tax on tobacco products to help fund healthcare for children. The tax will be a 2% tax on all tobacco products sold in the state. What type of tax is this excise tax?

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cuddlydva cuddlydva

13-01-2018

This type of tax is a sin tax. Sin taxes are taxes on products deemed detrimental/unhelpful to society (tobacco products)

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looringhighjump looringhighjump

02-12-2019

Answer: Regressive

Explanation:

Regressive taxes are those that affect people with lower wages more harshly than people with large incomes because it is implemented uniformly to any circumstances, despite the income differences among taxpayers.

Alcohol and tobacco have sin taxes (applied on products that are considered to be dangerous to prevent people from using them). Regardless, the Internal Revenue Service (IRS) deems these taxes to be regressive.

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