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

Question

Quizplus · Accepted Answer

The tax on cigarettes is both a sin tax, as it is intended to discourage unhealthy behavior, and an excise tax, as it is a tax on a specific good.

The State of Georgia Recently Increased Its Tax on a Carton