Are There Any Challenges with Implementing Excise Taxes?
While excise taxes are effective, they also face several challenges. One major issue is the potential for regression, as these taxes can disproportionately affect low-income populations. To mitigate this, revenue from excise taxes can be reinvested into public health initiatives or subsidies for healthier alternatives. Additionally, there is often political opposition from industries that are affected by these taxes, which can complicate their implementation.
