Sin Taxes
POLS 5440 Principles and Processes of Government Budgeting | Sin Taxes, Good or Bad? | An Examination of the Use of Sin Taxes in the United States |
By: Stacy Madden4/27/2012 |
Executive Summary Historically sin taxes have been an effective and efficient way for the government to raise revenue. The federal government used tariffs and consumption taxes to generate almost all of its revenue in the early years of our nation. The tax structure and philosophy has evolved and changed since the beginning of our nation, however the use of sin taxes has remained a good way for governments to raise revenues. Sin taxes no longer provide a significant portion of federal or state governments; however they do provide a consistent stream of revenue. This paper examines the use of sin taxes in the United States. First, the paper provides a basic understanding of sin taxes, current definition, and history. Next, the paper outlines the goods and services most commonly targeted by sin taxes and provides information about the effectiveness of these taxes to raise revenue and accomplish policy outcomes. Common goods and services targeted by sin taxes include; tobacco, alcohol, fuel, hazardous chemicals, gambling, prostitution, pornography, and unhealthy foods. Lastly, the paper will examine the ethical and moral implications of sin taxes from the perspective of those who support and oppose the use of sin taxes in the United States.
Introduction Ben Franklin adequately stated the importance of taxes with his famous quote, “but in the world nothing can be said to be certain except death and taxes.” Citizens have vested governments with the power to tax in order to provide services for the common good. There are many different ways for a government to tax its citizens in order to raise revenues, ranging from taxes on income, wealth, and property, to taxes on goods and services. The United States uses many of these taxes in varying levels to raise the
By: Stacy Madden4/27/2012 |
Executive Summary Historically sin taxes have been an effective and efficient way for the government to raise revenue. The federal government used tariffs and consumption taxes to generate almost all of its revenue in the early years of our nation. The tax structure and philosophy has evolved and changed since the beginning of our nation, however the use of sin taxes has remained a good way for governments to raise revenues. Sin taxes no longer provide a significant portion of federal or state governments; however they do provide a consistent stream of revenue. This paper examines the use of sin taxes in the United States. First, the paper provides a basic understanding of sin taxes, current definition, and history. Next, the paper outlines the goods and services most commonly targeted by sin taxes and provides information about the effectiveness of these taxes to raise revenue and accomplish policy outcomes. Common goods and services targeted by sin taxes include; tobacco, alcohol, fuel, hazardous chemicals, gambling, prostitution, pornography, and unhealthy foods. Lastly, the paper will examine the ethical and moral implications of sin taxes from the perspective of those who support and oppose the use of sin taxes in the United States.
Introduction Ben Franklin adequately stated the importance of taxes with his famous quote, “but in the world nothing can be said to be certain except death and taxes.” Citizens have vested governments with the power to tax in order to provide services for the common good. There are many different ways for a government to tax its citizens in order to raise revenues, ranging from taxes on income, wealth, and property, to taxes on goods and services. The United States uses many of these taxes in varying levels to raise the
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