The state of Georgia recently increased its tax on a carton of cigarettes by $2.00. What type of tax is this?
A) An excise tax
B) It is not a tax; it is a fine
C) A sin tax
D) A sin tax and An excise tax are correct
E) None of the choices are correct

Question

Quizplus · Accepted Answer

An excise tax is a tax on specific goods, such as cigarettes. A sin tax is a type of excise tax that is specifically levied on goods considered harmful, like tobacco. Therefore, the tax on cigarettes is both an excise tax and a sin tax.

The State of Georgia Recently Increased Its Tax on a Carton