Harry sells scuba gear and shark guns. As a novelty

Harry sells scuba gear and shark guns. As a novelty to attract sales to off-beat big game shark hunters, Harry takes marshmallows, paints them a bright pink color and advertises them as shark bait, although he, and any intelligent shark fisherman, knows that no shark would ever bite on such an absurd form of bait. A snotty-nosed IRS agent comes into Harry’s shop and informs him that the painted marshmallows are subject to a 10% excise tax on fish bait. Can this be right?

Your analysis should be organized into the following sections: Facts, Tax Issues, Tax Sources, Tax Analysis and Conclusion.