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) 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, which is levied on goods considered harmful, and an excise tax, which is a tax on specific goods.

The State of Georgia Recently Increased Its Tax on a Carton