The United States has many forms of taxation. These taxes are collected by both the federal government and local governments. One type of tax is the excise tax. This tax affects the consumption of specific goods. It is a targeted tax that you may pay without realizing it.

How is an Excise Tax Different from a Sales Tax?

Excise tax and sales tax differ in two main ways. First, excise tax applies only to specific goods. In contrast, sales tax usually applies to almost everything you buy, with a few exceptions like unprepared food and clothing. Common examples of goods with excise tax include luxury items and products linked to health issues, such as cigarettes and alcohol.

Second, sales tax is a percentage of the sale price. For instance, buying a Mercedes S Class results in higher sales tax than buying a Toyota Corolla. The percentage is set by local governments. In the United States, 45 states impose sales tax. Excise tax, however, is a flat rate applied to specific items, set by either state or federal government.

How Does the United States Compared to Other Countries?

The US collects about 4% of its revenue from excise taxes. This is lower than the 12% average for the other 29 nations in the OECD (Organization for Economic Co-operation and Development). The definition of excise taxes in the U.S. is relatively narrow. Most sales and consumption taxes are left to the states.

For example, the Federal Government imposes a tax of $0.184 per gallon on gasoline. This tax is the same for every gallon sold in the U.S. It accounts for nearly half of the total excise taxes collected by the government.

Excise taxes are applied to certain items for several specific reasons. First, mass consumption of a product makes an excise tax a good way to generate revenue. This approach avoids the politically sensitive issues related to increasing income or sales tax. Second, many excise taxes are collected to maintain systems used by those being taxed. For example, gasoline taxes support the US government’s extensive network of roads.

The third and fourth reasons involve the negative impacts of the taxed items. Excise taxes on harmful chemicals and gasoline aim to limit their environmental damage. Taxes on substances like tobacco and alcohol help fund research and prevention efforts. These taxes also discourage use. When a pack of cigarettes costs over $10, as seen in many states, fewer people are likely to smoke.

Types of Excise Tax and What it Applies to

There are two types of excise tax. The first is a specific fixed dollar amount for items like gasoline and cigarettes, which is included in the price. The second type is an ad valorem tax, which is a percentage charged on a specific good. Additionally, there is a third type of excise tax in the US that applies to retirement accounts. This includes taxes on excess contributions to IRAs, early distributions, and penalties for not meeting minimum distribution requirements.

The effective federal excise tax rate varies by income bracket. The Top 1% of earners pay about 0.1% in excise taxes. In contrast, the bottom 40% pay around 1-1.5%. This difference is largely due to taxes on gasoline, which almost everyone pays. Gasoline and other essentials account for a larger portion of low-income budgets. As a result, they pay a higher percentage of their income in excise taxes.

Excise taxes apply to various items. These include beer, liquor, wine, and airline tickets. Certain vehicles, like luxury cars or trucks, are also taxed. Some unexpected items are affected too. For example, indoor tanning has a 10% tax. Bows, quivers, and points for arrows face an 11% tax. Sport fishing equipment and tires also fall under these taxes.

One notable excise tax that will be implemented in 2018 is the Cadillac Tax. This tax targets specific high-cost health benefit plans. It will add a 40% excise tax to these plans. The limits are set at $10,200 for individuals and $27,500 for couples and families per year. While not yet in effect, it is expected to help fund other parts of the Affordable Care Act when it is implemented.

How to Know How Much You’re Paying

Excise taxes are factored into the prices of the products you purchase. This makes it difficult to know what you are actually paying. Some excise taxes vary by state. For example, the excise tax on cigarettes in Virginia is $0.30 per pack. In New York, it is $4.35 per pack. Statutory gasoline taxes can also vary significantly.

To know what you are paying, search for the excise tax in your state. Federal excise taxes are listed on the IRS’s website. Each state provides information on their website or in documentation. While the taxes can differ widely, the affected items remain consistent. This helps you keep track of your expenses.

FAQs

What is the difference between federal excise duty and sales tax?

Federal excise duty (FED) applies to specific types of manufacturing, imports, and services. It is charged at varying rates. Sales tax on services replaces FED. According to the constitution, provinces are responsible for levying and collecting this tax on services rendered within their areas.

Which is not an excise tax?

General sales tax is not considered an excise tax. It is not imposed by the federal government.

What is the meaning of excise duty in banking?

Excise duty is an indirect tax. It applies to specific goods and services. This includes many transactions in the banking sector. For banks, excise duty applies to various services. These services include deposits, loans, and credit card transactions.

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Wondering how to generate passive income in 2025? There are several solutions for effortlessly building lasting wealth. In this article, we present the most effective investment strategies. These ideas for optimizing your financial resources will allow you to achieve the financial freedom you’ve always dreamed of. Here’s how.

Introduction to Passive Income

In 2025, various opportunities can help you maximize your financial resources through passive income. These solutions can help you achieve your long-term financial goals without impacting your free time.

What is passive income?

Passive income is earnings earned with little, if any, additional work on a daily basis.

Unlike a salary, where you directly exchange your time for money, passive income is generated even when you’re not actively working, often through initial investments of capital or time.

Why invest in passive income in 2025?

Investing in passive income in 2025 is a real advantage for ensuring your financial security.

With this secondary source of income, you can improve your standard of living, cope with unexpected expenses and have more free time to devote to your family, your passions and your hobbies.

Passive Investing Ideas

Passive income ideas in 2025 are plentiful, offering options for all skill levels and financial commitment.

To help you with your project, we have grouped together below the best strategies for diversifying your passive investments in 2025.

1. Rental investment

There are several forms of rental investment. Traditional rental is the most common: you take on a tenant – or even tenants, if you opt for shared accommodation – and receive a monthly income. If your tenants are looking for a long-term solution, you can agree on the duration and a renewable lease, or opt for a shorter format, for example for students. Whether or not to use an agency is a matter of choice: while it may be tempting to save money by managing the property yourself, an agency provides guarantees in the event of damage or unpaid rent, which can make a real difference.

There are also techniques for buying and selling apartments or houses: buying a property, carrying out renovations to increase its value, then reselling it and collecting the capital gain. The challenge, of course, is getting a good deal. But by starting by visiting properties, for example on weekends, you should begin to familiarize yourself with the real estate market and gradually identify those with potential.

2. Renting your apartment

Unlike rental investment, this time it’s about renting out your main residence, for example through the popular rental platform Airbnb. While short-term rentals require some logistical organization, they allow you to profit from your apartment or house during vacations or trips.

3. Renting your car

There are apps, like GetAround, that offer car rentals for car owners when they’re not using them. While there’s a risk of damaging your vehicle, leaving it unused for too long also wears it out, ensuring you get the most out of your purchase .

4. Advertising on your car

This is another form of car rental, since it involves allowing a brand to put advertising on your bodywork , in return for a monthly income, and generally accompanied by your commitment to drive a certain number of kilometers.

5. Parking space rental

More affordable for smaller budgets than buying a rental property, the strategy of buying parking spaces allows you to quickly generate passive income, as you have a good chance of finding a buyer, especially in large cities like Paris, where parking your vehicle is a headache. It is common to see investors get caught up in the game and find themselves in charge of a real estate portfolio of around ten parking spaces after a few years.

II. Passive income through investment

It is a preferred source of passive income for all those who do not – yet – have the capital necessary for a real estate investment. Financial investment allows you to optimize your savings and improve your income each month, provided of course that you make wise investments. You can therefore decide to initially invest 10% of your monthly income, and place, for example, half in the stock market and the other half in cryptocurrencies or crowdlending.

6. The stock market

Stock market investing involves buying shares to receive regular dividends. An initial investment is required, but it doesn’t need to be large. For beginners, it’s best to start with small investments while you familiarize yourself with the stock market and gain expertise, because investing involves risk. If the price of the company you’ve invested in increases, you make money… but if it decreases, you lose money. 

To limit risks, the wise thing to do is to build a diversified investment portfolio, which is why it can be interesting to invest in ETF trackers. These are stock market indices that actually represent several stocks – so-called “packages” – indexed to certain indices, such as the Dow Jones or the Nasdaq. ETFs therefore represent safer investments, because they are not based on a single company. To take your first steps in the stock market, favor trading platforms that have proven themselves, such as eToro . At first, it will be normal to generate only small profits, but in accordance with the principle of cumulative effect mentioned above, these should increase little by little.

7. Investing in startups

Investing in a startup probably remains the investment with the highest multiples. However, it remains a risky investment because there’s no guarantee you’ll get your money back following a financial event like a fundraising round. But the most complex part here is finding the right startup to invest in. You often do this through your own network.

But today, there are sites like Blast Club or Crowdcube that allow an individual to invest in a startup without necessarily having to enter with a ticket of 20,000 euros (which is often the minimum required).

8. Cryptocurrencies

Having emerged in 2008 with Bitcoin, cryptocurrencies are an investment that arouses both desire and distrust —which is understandable given the high volatility of these virtual currencies’ prices, which can increase or decrease by 20% in a single week. However, in the medium term, cryptocurrencies are mostly following upward trends and are increasingly recognized by traditional financial players: banks, investment funds, and even some governments. Above all, these virtual assets present unparalleled return opportunities.

Caution, though: like other forms of investment, cryptocurrencies require patience and careful monitoring. We recommend starting by buying a small amount of cryptocurrencies (focusing on the strongest ones that remain affordable, like Ethereum or Solana), the same amount each month, and not giving in to the urge to sell as soon as the price drops. Brief drops are normal and should not push you to sell your values; but a gradual and constant devaluation is a warning signal. Just as with the stock market, choose reliable platforms to invest: we can cite the benchmark Coinbase, crypto.com or even the English neo-bank Revolut.

9. Crowdlending

A third option is to lend money to businesses: this is called crowdlending. This investment works on the same principle as crowdfunding – participatory financing, which allows you to support young projects by pre-purchasing their products through sites like Kickstarter, Indiegogo, and GoFundMe. With crowdlending, this time, the idea is to help a business grow by making a loan that will be gradually repaid. Interest rates are usually around 1 to 2%, but some more daring projects can offer 5%. 

III. Passive income through a commercial approach

10. E-commerce

E-commerce projects are exciting , and inspire business creators every day to embark on the adventure. What could be more inspiring than seeing entrepreneurs create their sales platform from scratch and, through their work and business acumen, achieve several tens or even several hundreds of thousands of euros in turnover?

While an e-commerce site varies depending on its market, the main principles invariably consist of: 

Create your website, focusing on visual identity and customer experience. Creation platforms like Shopify will help you with the first step. Next, you’ll need to choose the manufacturers and suppliers you want to work with. Thanks to e-commerce, you won’t be forced to manage inventory yourself: you can design your platform so that the product goes directly from the manufacturer to the customer’s home.

Develop your customer base through marketing and/or advertising strategies—even if word of mouth remains the best ambassador: it proves that your model is popular. To do this, you will need to ensure the quality and origin of your products: the role of trust is key to doing business online, and it is essential to develop an ethical and transparent business. But once your site is launched, if your sector is promising, you have a chance to generate significant passive income. Waking up in the morning and receiving a notification indicating that a sale was made while you slept is a very gratifying experience!

11. Buying and reselling collectibles

Many items increase in value over time and are then resold at a high price to collectors  : wines, liqueurs, Pokemon cards, stamps, figurines, etc. You can, for example, invest in one of the collections issued each year by the Monnaie de Paris, then resell them later on an auction site.

12. Buying and reselling domain names

This practice consists of buying expired website domain names (the famous NDD) at low prices, which companies would like to buy in the near future. It will then be enough to resell them at a profit. At the beginning of the internet, in the early 90s, investors with a good nose bought domain names like auchan.fr, darty.fr, to resell them to brands when they launched into e-commerce.

Even today, there are domain names that can be bought and then resold at auction, for example on the GoDaddy or DotMarket sites . But be careful, all the same, not to cause harm to small businesses that simply do not yet have the means to protect their domain name. If you see an opportunity, especially in niche domains, then buy the expired domain name, work on its natural referencing (SEO) and resell it with a capital gain.

13. Selling links (backlinks)

Do you have a blog that’s getting a bit of traffic? Then monetize it by signing up to backlink-buying platforms like PaperClub or NextLevel. These sites connect advertisers who want to promote content or boost your SEO with website /blog publishers. The higher your domain authority, the higher the price of link placements.

IV. Passive income through the monetization of talent

Here are some sources of passive income that don’t require a financial investment, but rather time and effort. They rely on leveraging a resource you already possess: your talent.

14. Programming an application or tool

This passive income primarily targets web developers. For example, you can create mobile applications or plugin-type tools. Then, either sell them or put them online with a freemium offer; that is, free but with certain paid features. This is the case for many downloadable mobile games, or more professional applications like Thruuu, a Google search page analysis tool. However, with the arrival of artificial intelligence and no-code, it is now possible to develop an application without needing to code.

15. Creation of graphic products

If your talents are more graphic, a good way to generate passive income is to combine your artistic flair with an e-commerce approach. You can create digital products and put them up for sale on an online platform, the most well-known of which is undoubtedly Etsy. This could, for example, involve:

• Greeting cards
• Wall art, posters, prints
• Calendars, organizers
• Decorations
• Invitations, letters

16. Royalties on photos, sounds, videos

Another option for those with an artistic streak is to sell photos and videos on online platforms like Fotolia, Unsplash, or Shutterstock. Authors are compensated with a commission on each sale. For musicians, there’s the Epidemic Sounds platform, which pays a percentage on the use of music and/or samples. Note that the remuneration is relatively low, but it’s still an interesting way to gain exposure as an artist.

17. Selling online training courses

We’re familiar with this one at LiveMentor! If you have specific expertise, it’s now possible to market it in the form of online training. While this activity is mostly a supplement to income alongside a job, for some people, online training can generate enough revenue to devote themselves to it full-time. The quality of the content and support you provide will obviously be key to building an audience.

Choosing your niche is also important. It’s best not to aim too broadly: a general yoga training will have a harder time breaking through than one specifically aimed at pregnant women. To choose your niche, it may be worth doing a little market research by looking at what already exists. If you don’t identify any competitors, it may be that this theme isn’t a promising one… or that you’ve had a stroke of genius.

There’s no storage issue here. All course content—videos, PDFs, exercises—is hosted online; that’s why we recommend using a platform like Teachable, Podia, or Didacte , which facilitate the process for a small fee. Alongside creating your paid course, you’ll need to promote it. For example, you can make certain content freely available on social media—Instagram, YouTube, etc. This free content will allow you to gradually build an audience and build a list of subscribers to whom you can send promotional offers.

18. Writing an ebook

If you have expertise and the desire to use your pen, another possibility is of course to gather your knowledge in an ebook and put it on sale online, on Amazon or other platforms, such as Youscribe. To increase your chances of being read, you must, as with training, carefully choose your niche, and, in the case of the ebook, prefer a relatively short format and a price low enough to encourage the curious to buy without too much hesitation.

FAQ

1. What is passive income in 2025?

Earn passive income with little or no daily effort and grow your financial gains effortlessly. In 2025, this income comes from assets, investments, or projects that require no intervention from the recipient.

2. How long does it take to generate significant passive income?

The time it takes to generate significant passive income can vary from a few months to several years, depending on the type of investment and its initial amount.

3. What is the best passive income?

The best passive income option depends on your financial goals and risk tolerance. Popular options include real estate investments, ETFs, and digital products.

4. How to invest passively?

Passive investing involves placing capital in investment vehicles that do not require active management, such as rental properties, ETFs, fractional bonds, etc.

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During a vacation, of course no one wants to be bothered by the emergence of stomach ache or Bali belly. Have you ever heard of the term? Although it does not exist in the medical world, the term Bali belly is said to be one of the terms that is quite common among tourists, especially travelers from abroad who visit Bali for a vacation.

So what exactly is meant by Bali belly ? Is there a way to avoid it? Well, to answer that question, continue reading the explanation about Bali belly below.

What is Bali belly?

Bali belly is a digestive disease that is commonly experienced by tourists when traveling or vacationing on the island of Bali. 

This condition can also be called travelers’ diarrhea. It usually occurs when consuming food or drinks that have been contaminated by bacteria.

The risk of this disease increases when you eat or drink in places where hygiene is poor, for example on the side of the road. 

However, this condition is generally harmless and can go away on its own within a few days.

How common is this condition?

Bali belly is a common medical condition that occurs when someone is on holiday to the island of Bali for the first time.

Quoting NIH , at least around 40% – 60% of people experience diarrhea while traveling. This condition generally occurs in areas with low sanitation.

Signs and symptoms of Bali belly

Its symptoms usually appear suddenly within 6 – 24 hours after being infected by bacteria in food or drink. 

However, in some cases, symptoms may appear a week or more after infection. This is what causes someone to experience digestive problems after returning from Bali. 

Some common signs and symptoms experienced by travelers include:

• abdominal pain or cramps,
• bloated ,
• frequent bowel movements,
• feces that turn liquid,
• nausea, and
• fever.

These digestive disorders symptoms are usually mild and can improve on their own within a few days.

When to see a doctor?

Contact a doctor immediately if your symptoms do not go away within a few days and actually get worse. 

You also need to be careful if diarrhea is accompanied by other symptoms such as high fever, bloody stools, and signs of dehydration, such as dry mouth, muscle cramps, or dizziness. 

Why can someone get Bali belly? 

Bali belly condition is usually caused by a virus, which is found in contaminated food and water. Based on the identification results, the viruses that most often cause this are Rotavirus and Norovirus. In addition to viruses, Bali belly is also usually caused by bacterial infections that contaminate food. The bacteria commonly found in this case are E. coli, Salmonella, and Campylobacter.

The virus or bacteria enters the body through food contamination. Well, considering the activity of trying local food is something that cannot be missed when traveling, it is not impossible for someone to be attacked by Bali belly. This risk factor is quite high considering the tropical and humid climate of Indonesia, which makes the development of bacteria in food faster. 

Not only that, if the storage, processing, and serving of food is done without paying attention to good and proper hygiene standards, then the risk of spreading bacteria will be greater. For that, as a tourist, it is a good idea to pay attention to the tips below. 

How to avoid Bali belly

For those of you who want to visit the Island of the Gods Bali, you should understand how to avoid Bali belly. Here are some steps you can take to avoid Bali belly .

Pay attention to drinking water

The first thing you need to do to avoid Bali belly is to pay attention to drinking water. While you are in Bali, it is better to consume bottled water or bottled drinking water. In addition, if you order a drink, it should be without ice to avoid the risk of ice cubes made from unsterile water. 

Maintain cleanliness

The next thing you need to do to avoid Bali belly is to maintain cleanliness. While you are in Bali, you should wash your hands regularly using soap in running water or you can also use antiseptic liquid. Washing your hands is mandatory, especially before eating. In addition, if you want to wash fruits or vegetables, avoid using tap water. 

Pay attention to food

You also need to pay attention to the food you consume while on vacation in the Island of the Gods. During your vacation, you should choose fresh or freshly cooked food and try to avoid fast food. In addition, avoid consuming undercooked meat. 

Use clean tools

In addition to paying attention to the food consumed, you also need to pay attention to the tools used for eating. When you are about to eat, make sure the cutlery is clean and dry. If the cutlery is wet and not clean, it is best to avoid using it. 

Preparing medicines

The last way to avoid Bali belly is to prepare medicines. Especially for those of you who have a history of digestive problems, you should consult a doctor. You can prepare medicines or supplements to prevent the virus from entering the body. 

Thus the explanation about Bali belly and tips that you can pay attention to prevent it. Culinary tourism is indeed not to be missed. However, you can increase your vigilance and caution in choosing a place to eat or the food consumed. 

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