Vice taxes are additional taxes that are placed on items that are deemed unhealthy or socially unacceptable. Governments often pass them with the excuse that they intend to help the population become more healthy or to discourage behaviors they believe are not in the public's best interest.
But it's a lie.
Vice taxes are most common at the city and state level. One of the most common ones in the tobacco tax. The tax on cigarettes is disproportionately high in many states. The government can get away with it since smoking is unhealthy and becoming more socially unpopular. They say the reason the tax is so high is to discourage people from smoking, but their behavior says otherwise.
When a vice tax is passed, they often say that the proceeds will go to schools, fire/police service, hospitals, or some other purpose that no one can really argue against. They then budget the increased tax revenue into those areas. But wait, I thought the purpose was to lessen or eliminate the behavior, why are they assuming increased tax revenue? Because they really don't care if anyone quits, they just want more money and smokers are easy to exploit. They take advantage of their addiction just as much as any tobacco company they are painting as evil.
If they really wanted to tax something into extinction, all they would have to do is put a $100 flat tax on each pack of cigarettes. Then no one would buy them, at least in that state. But they don't want that. They want to play a balancing act between getting tax revenues, appearing to care about people's health, and keeping tobacco lobbies on the hook for campaign contributions in return for more favorable tax rates.
I'm tired of the government trying to convince me it cares about me when it so transparently does not.
But it's a lie.
Vice taxes are most common at the city and state level. One of the most common ones in the tobacco tax. The tax on cigarettes is disproportionately high in many states. The government can get away with it since smoking is unhealthy and becoming more socially unpopular. They say the reason the tax is so high is to discourage people from smoking, but their behavior says otherwise.
When a vice tax is passed, they often say that the proceeds will go to schools, fire/police service, hospitals, or some other purpose that no one can really argue against. They then budget the increased tax revenue into those areas. But wait, I thought the purpose was to lessen or eliminate the behavior, why are they assuming increased tax revenue? Because they really don't care if anyone quits, they just want more money and smokers are easy to exploit. They take advantage of their addiction just as much as any tobacco company they are painting as evil.
If they really wanted to tax something into extinction, all they would have to do is put a $100 flat tax on each pack of cigarettes. Then no one would buy them, at least in that state. But they don't want that. They want to play a balancing act between getting tax revenues, appearing to care about people's health, and keeping tobacco lobbies on the hook for campaign contributions in return for more favorable tax rates.
I'm tired of the government trying to convince me it cares about me when it so transparently does not.
