Taxes that are designed to discourage consumption of the taxed good are called _____.
A)regressive taxes
B)head taxes
C)sumptuary taxes
D)sales taxes

Question

Quizplus · Accepted Answer

Sumptuary taxes are designed to discourage consumption of specific goods or services deemed as luxurious, harmful or immoral. They are often used to promote public health and morality or to raise revenue for specific purposes. Examples of sumptuary taxes include taxes on tobacco, alcohol, sugary drinks, and gambling. Regressive taxes are not designed to discourage consumption, but they disproportionately affect low-income earners. Head taxes are a fixed tax per person regardless of their income. Sales taxes are not necessarily designed to discourage consumption, but they do increase the price of items, which can affect consumer behavior.

Taxes That Are Designed to Discourage Consumption of the Taxed