Question

I am a Big sin taxes, even when the sin in question is not my own.
I am a non smoker and would like to see cigarettes banned from restaurants, and Gov. Tim Kaine proposal to double Virginia Tabasco tax to 60 cents per pack lift me with mixed feelings. To me taxes are not an instrument for enforcing morality or even common sense. They're a method governments use to pay for Public infrastructure and services, spreading the cost as Broadly and fairly as possible among Everyone who benefits. It's not that I feel sorry for tobacco companies. they lost the symphony vote back in 1994 when executive from Philip Morris and six other companies testified in Congress that nicotine is not addicted.

Answer 1

Sin taxes are good only up to a certain point and limit and not beyond that limit. Sin taxes are often imposed to pay for negative externalities and force people to take certain actions like reduce the consumption of tobacco, or of sweetened beverages, or of alcohol or to control pollution levels. These taxes are imposed to cover the burden on society of smoking or drinking alcohol and to discourage consumption of goods that are bad for the health of a person.

However, the act of constantly raising sin taxes goes against the founding principle of these taxes i.e. to pay for negative externalities. The act of doubling Virginia Tabasco tax to 60 cents per pack belies the notion that the sin tax is being used to pay for externalities. Once the burden to the society is covered then constant raising of the sin tax goes against the basic purpose for which it was imposed and then serves no specific objective.

While the intentions of sin taxes are good they should be implemented in a systematic manner so that the end goals and objectives of imposing such taxes are fulfilled tangibly. If not properly implemented and regulated sin taxes will not serve the purpose of discouraging consumption of unhealthy products but will merely serve as another source of revenue for the government in the long run.