Does a national tax on cigs count as a direct tax?

SuperDemocrat

Gold Member
Mar 4, 2015
8,200
868
275
I don't by cigarettes but is there a national sin tax on them and if so, would that constitute as a direct tax as specified in the constitution?
 
I don't by cigarettes but is there a national sin tax on them and if so, would that constitute as a direct tax as specified in the constitution?
Yes it does. There have been taxes on alcohol and tobacco since the revolution.
 
It's an indirect tax,

A government may impose several different kinds of taxes on its citizens, including income and excise. Income tax is usually based on a person’s earned wages and may be levied with progressive, flat rate or regressive systems. An excise tax may be imposed on a country’s produced goods, although some governments levy these on imports as well. Whereas income tax is categorized as a direct tax, excise is considered that of an indirect tax. Direct taxes are paid directly by those who owe them, whereas indirect taxes are often added to the price of goods to reimburse sellers for their obligations.
 
No because they tax the manufacture of a product, of course it's passed through to the consumer. The tax on not buying health insurance is a great example of an unconstitutional direct tax.
 

Forum List

Back
Top