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Tax Foundation · Dec 19, 2025

How Fixed-Rate Excise Taxes Can Produce Unintended Harm

Tax Brief summary and classification of the original reporting.

Bottom Line

💡 How Fixed-Rate Excise Taxes Can Produce Unintended Harm. General industry update.

Summary

Fixed-rate excise taxes are often adopted to reduce harm, curb excessive consumption, or discourage dangerous behaviors. However, without attention to how consumers substitute between products, well‑meaning policies may exacerbate the very harm they aim to prevent.

Classification

Category: backgroundPriority: informationalReason: General tax news

Affected Groups

All tax practitioners

Related Topics

Original Source

We aggregate public tax updates and provide AI-assisted summaries. Please read the original reporting for full details.

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