What are taxes imposed on goods considered socially less desirable commonly called?

Taxes imposed on goods considered socially less desirable are commonly known as Sin Taxes. This term specifically refers to taxes that are levied on products like tobacco, alcohol, and sugary drinks, which can have negative health effects or contribute to social issues. The government imposes these taxes not just to generate revenue but also to discourage the consumption of these items, contributing to public health goals and other societal interests.

Sin Taxes serve a dual purpose: they aim to address the external costs associated with the consumption of harmful goods while also contributing to funding public services related to health and welfare. This concept ties into broader taxation policy, where the government often seeks to influence consumer behavior for the greater good.

In contrast, the other types of taxes mentioned have distinct purposes. Luxury taxes are specifically levied on luxury goods—not necessarily tied to public health concerns. Excise taxes are a broader category that includes taxes on specific goods, which can encompass both desirable and undesirable items. Consumption taxes generally refer to taxes applied to overall consumption rather than targeting specific types of goods deemed harmful. Thus, Sin Taxes accurately captures the intention and social context behind taxing goods viewed as problematic.