Changes

In addition to the many Supreme Court rulings, such as the one cited above, state and federal courts have consistently ruled that an excise involves the exercise of a priveleged activity or the purchase of a luxury (special) commodity:  

In addition to the many Supreme Court rulings, such as the one cited above, state and federal courts have consistently ruled that an excise involves the exercise of a priveleged activity or the purchase of a luxury (special) commodity:  

'''***''' “The term ‘excise tax’ is synonymous with ‘'''privilege tax'''’, and the two have been used interchangeable.  (American Airways v. Wallace, 57 F.2d 877, 880)

'''***'''   “The term ‘excise tax’ is synonymous with ‘'''privilege tax'''’, and the two have been used interchangeable.  (American Airways v. Wallace, 57 F.2d 877, 880)

'''***''' “Whether a tax is characterized in a statute imposing it, as a privilege tax or an excise tax is merely a choice of synonymous words, for an excise tax is a <br />'''privilege tax'''.”  Foster & C. Co. v. Graham, 154 Tenn. 412, 285 S.W. 570, 47 ALR 971.   

'''***'''   “Whether a tax is characterized in a statute imposing it, as a privilege tax or an excise tax is merely a choice of synonymous words, for an excise tax is a '''privilege tax'''.”  <br />Foster & C. Co. v. Graham, 154 Tenn. 412, 285 S.W. 570, 47 ALR 971.   

'''***''' “An ‘excise tax’ is often used synonymous with ‘'''privilege'''’ or ‘license tax‘.”  Shannon v. Streckus Steamers, 279 Ky. 649, 131 S.W.2d 833, 838.

'''***'''   “An ‘excise tax’ is often used synonymous with ‘'''privilege'''’ or ‘license tax‘.”  Shannon v. Streckus Steamers, 279 Ky. 649, 131 S.W.2d 833, 838.

'''Excises and the Constitution'''

'''Excises and the Constitution'''

From the above definitions, it is clear that an excise is an Indirect tax in the Constitutional sense. It is paid on a '''voluntary''', or '''indirect''' basis, because it only taxes things a person does not require to sustain life or to exercise an unalienable right. In harmony with the intent of the Founding Fathers and the Fundamental Law of the United States, excises can be '''avoided''' simply by not buying the luxury item in question or participating in the privileged activity.

From the above discussion, it should be clear that an excise is an Indirect tax in the Constitutional sense. It is paid on a '''voluntary''', or '''indirect''' basis, because it only taxes things a person does not require to sustain life or to exercise an unalienable right. In harmony with the intent of the Founding Fathers and the Fundamental Law of the United States, excises can be '''avoided''' simply by not buying the luxury item in question or participating in the privileged activity.

Scholars of American history widely agree that Adam Smith and Alexander Hamilton were the authorities on economic theory at our nation’s founding.  The following excerpts clearly reveal Smith’s and Hamilton’s views on the meaning of “excise”:

Scholars of American history widely agree that Adam Smith and Alexander Hamilton were the authorities on economic theory at our nation’s founding.  The following excerpts clearly reveal Smith’s and Hamilton’s views on the meaning of “excise”: