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An excise is a tax levied exclusively on goods, services, or activities which are considered ''privileged'' or ''luxurious''. Excises may not encumber “essential” items, or anything directly connected with the exercise of an unalienable right, such as the right to practice one’s religion or earn a living. Adam Smith, whose work, ''The Wealth of Nations'', functioned as the economic bible of America’s Founding Fathers, defined “luxurious” items as those which are not necessary to sustaining life, and thus which “every man is allowed to buy or not buy as he chuses.” [Bk. V, Ch. 2, Pt. 2] Such items are legitimate objects of excise. On the other hand, he defined “necessary” items as those “which are indispensably necessary for the support of life,” including those which “the custom of the country renders it indecent for creditable people…to be without.” In modern America, items which are “indecent” for “creditable people to be without" include food, clothing, housing, transportation, medicine, health care, arms for self-defense, phone service, sundries, education, etc. These items and activities are not qualified to be taxed under an excise.
An excise is a tax levied exclusively on goods, services, or activities which are considered ''privileged'' or ''luxurious''. Excises may not encumber “essential” items, or anything directly connected with the exercise of an unalienable right, such as the right to practice one’s religion or earn a living. Adam Smith, whose work, ''The Wealth of Nations'', functioned as the economic bible of America’s Founding Fathers, defined “luxurious” items as those which are not necessary to sustaining life, and thus which “every man is allowed to buy or not buy as he chuses.” [Bk. V, Ch. 2, Pt. 2] Such items are legitimate objects of excise. On the other hand, he defined “necessary” items as those “which are indispensably necessary for the support of life,” including those which “the custom of the country renders it indecent for creditable people…to be without.” In modern America, items which are “indecent” for “creditable people to be without" include food, clothing, housing, transportation, medicine, health care, arms for self-defense, phone service, sundries, education, etc. These items and activities are not qualified to be taxed under an excise.
<big>'''Court Rulings'''</big>
<big>'''Court Rulings'''</big>
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In addition to 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 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:
<big>'''A Recent -- But Misleading -- Definition'''</big>
<big>'''A Recent -- But Misleading -- Definition'''</big>
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Recently, there has been a concerted effort by the Left to reinterpret an excise as an “event tax” -- that is, a tax levied on an “event” solely by virtue of the fact that an event or transaction has occurred. This definition is without foundation. The so-called “event” definition was completely unknown to the drafters of the Constitution, and has never been recognized by the Supreme Court of the United States or by any other court. Were that definition allowed, any “event” could theoretically be taxed as an excise, and the Constitutional distinction between Direct taxes (requiring apportionment) and Indirect taxes and excises (requiring uniformity) would collapse.
Recently, there has been a concerted effort by the Left to reinterpret an excise as an “event tax” -- that is, a tax levied on an “event” solely by virtue of the fact that an event or transaction has occurred. This definition is without foundation. The so-called “event” definition was completely unknown to the drafters of the Constitution, and has never been recognized by the Supreme Court of the United States or by any other court. Were that definition allowed, any “event” could theoretically be taxed as an excise, and the Constitutional distinction between Direct taxes (requiring apportionment) and Indirect taxes and excises (requiring uniformity) would collapse.
<big>'''Excises and the Constitution'''</big>
<big>'''Excises and the Constitution'''</big>
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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 ''not required'' 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 ''not required'' 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.