The Sins Of The Sin Tax
Economist Paul Samuelson was once asked to explain how sin taxes worked. He offered up the following commentary.
“Sin Taxes” are so called because they are levied on those commodities, such as tobacco and alcohol, which are the objects of widespread disapproval. “Such taxes,” Paul Samuelson says, “are often tolerated because most people–including many cigarette smokers and moderate drinkers–feel that there is something vaguely immoral about tobacco and alcohol. They think these ”sin taxes“ stun two birds with one stone: the state gets revenue, and vice is made more expensive.”
This is absolutely what has not happened in New York since Mein Obama and Gropenfurher Bloomberg have decided they would levy exorbitant sin taxes on tobacco products in New York City. Newsday.com describes the destructively regressive nature of the sin taxes on tobacco below.Read More »