Excise Tax Whiskey

About Excise Tax Whiskey

Excise taxes are taxes on specific goods produced or sold within a country. The US excise tax on whiskey, enacted in 1791, was the first federal excise tax. It triggered the Whiskey Rebellion. Excise taxes are typically imposed on alcohol, tobacco, and fuel, goods seen as harmful or non essential. Excise taxes on tobacco have been particularly effective in reducing smoking rates. The federal excise tax on cigarettes is 1.01 per pack, while state excise taxes range from 0.17 in Missouri to 4.35 in New York. Excise taxes on carbon fuels have been used to address climate change. Critics argue excise taxes are regressive, as they take a larger percentage of income from the poor.