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The first documented tax was in ancient Egypt around 3000 B.C., where, among other things, an excise tax was levied on oil and beer.[7] Thousands of years later, in his famous book An Inquiry into the Nature and Causes of the Wealth of Nations , Adam Smith gave favorable mention to excise taxation: Sugar, rum, and tobacco are commodities which are nowhere necessaries of life, which [have]become objects of almost universal consumption, and which are therefore extremely proper subjects of taxation.[8] This quote may read like a suggestion to utilize excise taxes to generate general revenue, and Adam Smith is often invoked to argue that exact point, but it is not that simple
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