#046 — “Sin” Taxes: Congress Raises Taxes on Tobacco
“Don’t Drink, Smoke, or Chew…
At the beginning of this month, the largest tobacco tax increase in history came into effect. The Federal tax on a pack of cigarettes increased from 39 cents/pack to $1.01/pack. Strategy involved is at least two-fold. Idealists believe from a health perspective, the increased taxes on tobacco is enough to force people to quit smoking, while the more cynical say it’s just a ploy to generate government revenue, particularly from the middle & lower class, where percentage-wise, it will hurt their pocketbooks greater.
…Or Associate With Those Who Do.”
This is a tough one for me. I can’t stand smoking; moreso cigarettes than cigars, hookah, or smokeless tobacco. I hate when I’m forced to breathe toxic air because of someone else’s habit. I also hate having to spend money on dry cleaning because my clothes get cigarette smoke ingrained in them anytime you go to a restaurant.
But I also hate taxes. However, government has a clear history of promoting public policy by dangling purse strings. To the citizenry they promote charitable causes, home buying, education, and parenting by providing tax breaks. To the states they offer matching federal dollars to build highways and infrastructure.
The difference with smoking, however, is that instead of a passive tax break, this is an active taxing of the citizenry’s actions. There IS a difference between encouraging behavior by providing tax relief, and manipulating behavior by forcing your hand with a tax. But here, it’s a bad habit that most don’t care about anymore; and since it doesn’t affect them, they’re all for it. I guess it comes down to whether you’re an Idealist or a Cynic on this issue.
Twitterverse
Here’s some comments I got on this topic from my Twitter buddies:
- @MoneyEnergy – an increased tobacco tax is a good thing in the long run – it’s only painful in the present for a select few… my 2 cents.
- @VictorB123 – I think tobacco is the modern “tea”. People should start growing their own and avoiding the tax if they use it.
- @gregzimmerman – ridiculous money grab!
- @PerryNunley – I quit smoking about 1 year ago cuz sin taxes are stupid (so is smoking).
- @photog357 – Utterly asinine. It’s nanny state tactic, & illogical in that revenue goes to counteract activity they want money from.
- @The_Weakonomist – I decided to be OK with it. They do risk an underground tobacco uprising. Moonshine? No. Brownburn!
- @blockss – Well, it’s quite interesting that the Federal Gov’t will need to recruit ~20 million more smokers in order to pay for SCHIP [the name of the tobacco tax legislation].
- @ManVsDebt – I hate smoking, but think this could be a slippery slope… How long until Fat Tax? Hmmm maybe I’d shed some pounds…
- @MoneyEnergy – but if more tax is necessary, shouldn’t it be on smtg we want to discourage (based on obj. evidence)? It’s not like the ONLY tax would have to be on cigarettes, etc. besides cigarette butts everywhere pollute, too.
Me? I say tax the tobacco enough to provide vouchers for my dry cleaning bill.
What do YOU think about tobacco taxes?
photo by Chris Schroeder
Hey, I hate smoking, too. I’m glad that it is banned in most public places where I live. However, I think that people should be allowed to smoke in their own homes, if they so choose. Try to control people’s action by the use of specific tax really is a “slippery slope.”
Thanks for the tweet love and nice post!
I think it’s a great idea. You chose the most disgusting and inconsiderate habit known to man, you pay a little more. I’m personally hoping the tax will make my little brother quit smoking. And I agree with the dry cleaning vouchers. Cancer sticks are so disgusting, and it seems everyone that smokes doesn’t seem to get that everyone within a 50 yard radius (yes, even outside) is being subjected their lung cancer smell.
I also think it is a great idea. I wish MI would outlaw it in restaurants and public places. I read yesterday that on top of the federal tax increase, Michigan is considering tacking on some additional taxes…and they want to add to the gas tax too. We will see.
Great post,
Thanks!
-Brandon
I am for a tax on tobacco. I also think that it should be outlawed in all restaurants and bars. This is an unhealthy habit that costs the rest of us money to fix health problems that could have easily been prevented in the first place. More expensive tobacco also means that less young people will have the funds to get a hold of them and this should stunt the growth of our smoking population. They should think about taxing fast food while they’re at it!
Good comments, Ellen, but there’s the rub — tobacco tax? Sure. Fast food tax? Maybe. How far do we go in taxing habits that are potentially harmful? Should it be a mere majority who determine when these ‘rights’ can be taxed and therefore harder to participate in?
Maybe there should be a tax on credit card use! Maybe I’ll blog about THAT one.