Who usually absorbs the cost of increased excise taxes?

The cost of increased excise taxes is typically absorbed by consumers, as businesses often pass on the additional expense through higher prices for goods and services. However, the extent to which consumers bear this cost can vary based on factors such as market competition and the price elasticity of demand for the taxed products. In some cases, businesses may absorb part of the tax to maintain customer loyalty or market share. Ultimately, the burden is shared between consumers and producers depending on the specific circumstances.