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How to excise article

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This video provides an overview of excise tax, explaining that it is imposed on specific goods and services or certain uses. Federal excise tax is usually imposed on items such as fuel, airline tickets, heavy trucks, tanning, tires, and tobacco. The tax is typically added to goods or services that are thought to be used excessively, with those who consume more paying more tax. Excise tax is not well understood by many unless they are in an industry where it is imposed.

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Why did Congress pass an excise tax on American made whiskey?

It all began in 1791, during Washingtons presidency, when Congress legislated an excise tax on whiskey and distilled spirits. The revenue from these taxes was intended to help lessen the federal deficit. In parts of western Pennsylvania and western Virginia, however, the law and its tax inspectors were not met kindly.

What does excise mean in tax?

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

What is the main purpose of excise tax?

An excise tax is a tax a government levies on specific goods and services, often with the goal of discouraging their consumption or to make up for their associated social costs. Unlike traditional sales taxeswhich apply to broad swaths of commerceexcise taxes target items such as fuel, tobacco, and firearms.

How did people react to the whiskey Act?

The law was immediately a failure, since refusals to pay the taxes were as common as intimidation against the officials hired to collect them. Excise officers sent to collect the tax were met with defiance and threats of violence. Some producers refused outright to pay the tax. Perhaps inevitably, violence broke out.

What was the excise Act of 1791?

The 1791 excise law set a varying six to 18-cent per gallon tax rate, with smaller distillers often paying more than twice per gallon what larger producers paid. All payments had to be made in cash to the Federal revenue officer appointed for the distillers county.

What is excise tax IRS?

Excise taxes are imposed on various goods, services and activities. Depending on the excise tax, the manufacturer, retailer or consumer may be liable. To pay an excise tax, use Form 720, Quarterly Federal Excise Tax Return.

Who did the whiskey tax hurt the most?

Unfortunately, this tax on production adversely impacted farmers on the western frontier. These small-scale farmers did not have ready cash to be able to pay the tax and were unable to easily pass on the burden to their customers, like the operators of large distilleries in the east.

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