6 Key Facts About Excise Taxes

Unexpected reasons the government wants more money.

By Barry J. Friedman, CPA

Everyone knows about income taxes and sales taxes, but we tend to forget about excise taxes, because they’re not obvious.

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Excise taxes are paid when purchases are made on specific goods or activities, such as wagering or highway usage by trucks. The producers or merchants pay the tax and typically include the additional tax in the price to the end consumer.