And aviation fuel taxes fund air traffic control operations. Some revenues go straight to the general fund in that jurisdiction and can be used for a variety of programs. Other excise tax revenue can be used for future funding of large capital projects. Jump to a topic by clicking below.
What is an Excise Tax? Sales Tax vs. How Often Do You File? How to Calculate Excise Taxes? Excise Tax. Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.
Sales tax is visible on your receipt while excise tax is often applied before the sales price. Note: Excise taxes are often subject to sales tax, so you can pay tax on tax. Who Pays Excise Taxes? The quick answer is: it depends on the product being taxed. What are personal exemptions? How do federal income tax rates work? What are tax credits and how do they differ from tax deductions? How do phaseouts of tax provisions affect taxpayers?
Capital Gains and Dividends How are capital gains taxed? What is the effect of a lower tax rate for capital gains? What is carried interest, and how is it taxed? How might the taxation of capital gains be improved? Who pays the AMT?
How much revenue does the AMT raise? Taxes and the Family What is the child tax credit? What is the adoption tax credit? What is the earned income tax credit? Do all people eligible for the EITC participate? How does the tax system subsidize child care expenses? What are marriage penalties and bonuses? How did the TCJA change taxes of families with children? Taxes and the Poor How does the federal tax system affect low-income households?
What is the difference between refundable and nonrefundable credits? Can poor families benefit from the child tax credit? Why do low-income families use tax preparers? How does the earned income tax credit affect poor families?
What are error rates for refundable credits and what causes them? How do IRS audits affect low-income families? Taxes and Retirement Saving What kinds of tax-favored retirement arrangements are there? How large are the tax expenditures for retirement saving? What are defined benefit retirement plans? What are defined contribution retirement plans? What types of nonemployer-sponsored retirement savings accounts are available?
What are Roth individual retirement accounts? Who uses individual retirement accounts? How does the availability of tax-favored retirement saving affect national saving? What is an automatic k? How might low- and middle-income households be encouraged to save? Taxes and Charitable Giving What is the tax treatment of charitable contributions?
What entities are tax-exempt? Who benefits from the deduction for charitable contributions? How would various proposals affect incentives for charitable giving? How large are individual income tax incentives for charitable giving? How did the TCJA affect incentives for charitable giving?
Taxes and Health Care How much does the federal government spend on health care? Who has health insurance coverage? Which tax provisions subsidize the cost of health care? How does the tax exclusion for employer-sponsored health insurance work?
What are premium tax credits? What tax changes did the Affordable Care Act make? How do health savings accounts work? How do flexible spending accounts for health care expenses work? What are health reimbursement arrangements and how do they work? How might the tax exclusion for employer-sponsored health insurance ESI be reformed? Taxes and Homeownership What are the tax benefits of homeownership?
Do existing tax incentives increase homeownership? Taxes and Education What tax incentives exist for higher education? What tax incentives exist to help families pay for college? What tax incentives exist to help families save for education expenses? What is the tax treatment of college and university endowments?
Tax Complexity Why are taxes so complicated? What are the benefits of simpler taxes? What policy reforms could simplify the tax code? Wealth Transfer Taxes How do the estate, gift, and generation-skipping transfer taxes work? Who pays the estate tax? How many people pay the estate tax? Excuse duty, or excise tax, is an enacted tax on particular goods, products, activities, or services at purchase.
Although businesses are responsible for collecting excise taxes and sending them to the proper authorities, the cost of the tax is typically passed on to the consumer in the form of increased prices. Much of the time, consumers are not aware that they are taking on the cost of excise duty in their purchase.
Excise taxes are usually collected for one of the following reasons:. Excise taxes exist at the state, local, and federal levels. Statutory excise taxes can vary from state to state, so consumers should look to their states for information on what excise taxes exist and how much they cost. How Are Excise Duties Charged? Excise taxes can be charged in one of the following ways:. What's an Example of Excise Duty? Check out some of the most common excise duties below. Percentage of Price:. Per Unit Tax:.
What Is Sales Tax? Traditional IRA. Income Tax. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Personal Finance Taxes. What Is an Excise Tax? Key Takeaways Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly.
Excise taxes can be ad valorem paid by percentage or specific cost charged by unit. Some excise taxes can be required directly from the consumer like property taxes and excise tax penalties on certain retirement account activities. Article Sources. Investopedia requires writers to use primary sources to support their work.
0コメント