Excise taxes are typically imposed on specific purchases such as alcohol, cigarettes, and gasoline. The primary aim is to reduce the consumption of such items, as they are considered harmful to health or the environment. In some instances, these types of taxes are referred to as "sin taxes." Therefore, all of the given choices are correct.

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Excise Taxes

Question 37

Multiple Choice

Excise taxes

A) are imposed on specific purchases, such as alcohol and cigarettes.
B) are often aimed at reducing the consumption of the items being taxed.
C) are referred to as "sin taxes" in some cases.
D) All of the above

Correct Answer: