Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was thought to be sufficient to drive many cigarette…
2013 Bar Exam · Taxation Law · Question 18 · Multiple choice
The question
Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was thought to be sufficient to drive many cigarette companies out of business, and was questioned in court by a cigarette company that would go out of business because it would not be able to pay the increased tax. The cigarette company is _____ (2013 Bar Question)
- A.wrong because taxes are the lifeblood of the government
- B.wrong because the law recognizes that the power to tax is the power to destroy
- C.correct because no government can deprive a person of his livelihood
- D.correct because Congress, in this case, exceeded its power to tax
This question has not been answered yet.