The government imposes excise taxes, just like any other tax, to raise money for the government and its programs and services. Excise taxes are imposed on specific goods such as gasoline and activities such as wagering and highway usage, according to the Internal Revenue Service. The taxes are typically included in the price of the product.Know More
Alexander Hamilton first introduced the idea of excise taxes around 1789. The United States had just emerged victorious from the Revolutionary War, and Hamilton proposed taxes as a way to help the U.S. government raise money and good credit for trade, according to Wikipedia. Because excise taxes are assumed in the price of the product or service, and the taxes are paid by businesses and imposed on a limited list of products and activities, Hamilton suggested these taxes could be a regular and easily-collectible source of income.
Fuel has been a major source of tax income for the U.S. government since the Tariff Act of 1789 was passed, according to Wikipedia. Due to technological advancements and an increased concern for the environment due to oil drilling, Congress created a tax credit program called the American Taxpayer Relief Act, which was enacted in 2013. The Relief Act gives natural gas tax credits that include a biodiesel mixture credit, biodiesel credit, alternative fuel credit and alternative fuel mixture credit.Learn more about Taxes
The Massachusetts fuel excise tax is paid monthly by fuel wholesalers, the vehicle excise tax is paid annually by vehicle owners, and the corporate excise tax is also paid annually. The Massachusetts Department of Revenue website provides details and guidelines for these and the numerous other state excise taxes.Full Answer >
Federal excise taxes are taxes imposed by the federal government on specific goods and services that are often included in the price of the product, according to the Internal Revenue Service. Excise taxes are commonly applied to products such as gas, cigarettes and alcohol.Full Answer >
In the United States, taxes can be levied by federal, state and local governments. The Internal Revenue System is the federal agency that taxes all income annually.Full Answer >
According to the 2014 Internal Revenue Service tax rates, the total tax on a personal income of $1,000,000 would come to $353,045.75. This does not include any adjustments for deductions, head of household or marriage status benefits.Full Answer >