What Is a Sumptuary Tax?
by 
The Curious Bag
ANSWERS: 1
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A sumptuary tax, or sin tax, is put on goods and services that those levying the tax disapprove of. The aim is to reduce the use of those goods and services and to punish those who persist, through higher prices.
Origin
Sumptuary taxes have their origin in the Middle Ages. What was considered to be gross and conspicuous consumption was heavily taxed. Such displays of wealth were considered sinful.
Examples
Taxes on gambling or drinking are sumptuary taxes.
Levying
Sumptuary taxes have been levied by different levels of government. States levy taxes on cigarettes, and so do some cities, such as New York City.
Effects
Sumptuary taxes can raise revenue, but they can also create black markets as people try to avoid paying them.
Misconceptions
Sumptuary taxes should not be confused with Pigou taxes. The latter are to alter the price level so that people take account of the costs of their behavior on others, such as a tax on carbon emissions.
Source:
TaxPolicyCenter.org: Excise Taxes
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