Taxes affect most of our economic decisions. Sin tax is a high tax designed to both raise revenue while reducing consumption of socially undesirable products such as liquor or tobacco. Those who actually pays for the tax experiences the incidence of a tax or the final burden of tax. Some people or businesses take advantage of the tax loopholes or exceptions and oversights that can help in avoiding taxes. Individual income tax is the federal tax on people’s earnings while sales tax is the general tax imposed on consumer purchases.