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.


Related Articles

Inflation Indexing the Federal Gas Tax

4 Reasons the Medical Device Tax is Bad Policy

Obamacare’s “Cadillac Tax” – A Poor Patch for a Hole in the Income Tax

Representatives Propose Taxes on Firearms and Ammunition

Links: A 20 Percent Tax on Guns, Fuel Tax Fraud in Europe, and Fat Joe Evades Taxes but Not Prison

Links: Self-Employment Taxes, Marijuana Tax, and the Tax Reform Road Show

Cities, States, and Obamacare’s “Cadillac” Tax

Links: Lap Dance Taxes and Tax Reform Options

Links: Gas Tax Increases, Effective Corporate Tax Rates, and the Estate Tax

Tanning Tax Not So Hot

Links: Russian Tax Havens and Taxing Hybrid Cars

Obamacare’s “Cadillac Tax” Working as Planned

Links: The Prospects of Tax Reform and Obamacare’s Cadillac Tax

Tuesday Links: The IRS Controversy and Other Things

Another Year, another Obamacare Tax

Funding Growing Programs with Declining or Finite Revenue Sources

The ACA Medical Device Tax: Bad Policy in Need of Repeal

President Obama’s New Tax Increases

Tax Freedom Day® 2013 is April 18, Five Days Later Than Last Year

Obamacare Medical Device Tax Still Baffling Business