Center for Federal Tax Policy

Excise Taxes

Excise taxes are special taxes on specific goods or activities—such as gasoline, tobacco or gambling—rather than general tax bases such as income or consumption. Excise taxes are often included in the final price of products and services, and are often hidden to consumers.

Overall, excise taxes account for less than 10 percent of all federal receipts. All 50 states and many local municipalities levy excise taxes of various kinds. Studies show excise taxes are disproportionately borne by low-income taxpayers, making them one of the most regressive components of the U.S. tax system.

CBO: Overall Federal Taxing and Spending is Progressive

Sources of Government Revenue in the OECD, 2014

Tens of Thousands Protest Internet Tax in Hungary

The Internet Tax Freedom Act and the Internet Economy

World Health Organization Wants Higher Excise Taxes on Tobacco

Tobacco Taxation and Unintended Consequences: U.S. Senate Hearing on Tobacco Taxes Owed, Avoided, and Evaded

As Australia Repeals Carbon Tax, India Doubles Down on Coal

Are Carbon Taxes Worth It? Australia Says No

Transportation Security Administration Fees Rise Today

The Highway Bill “Pension Gimmick:” A Primer

IRS Penalties Force Colorado Marijuana Retailers to Face Higher Tax Burdens

Rum Taxes and Perverse Incentives

Is the Murphy-Corker Gas Tax Plan a Tax Increase?

The Obamacare Cadillac Tax and its Mixed Bag of Consequences

Likely “Solutions” to Highway Trust Fund Shortfall Violate Sound Tax Policy and User-Pays Principle