Prompt: (1) Explain "excise" tax in detail. (2) Discuss when an excise tax is likely to be used and its impact. (3) Discuss the pros and cons of an excise tax. (4) Discuss the use of an excise tax to address a social cost or concern, and give at least one specific example of such an excise tax.

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1 Explanation of Excise Tax An excise tax is a type of indirect tax levied on the sale or consumption of specific goods rather than on the income or property of the taxpayer Unlike sales taxes which a... View the full answer