Since the dawn of time, humans have had their vices. Early man had a fermented drink, the Ancient Egyptians had a form of beer, and wine has been around for centuries. Some form of smoking, whether it be tobacco, marijuana or another form of drug has been used for hundreds of years to relieve stress, and gambling has taken many different forms throughout history. Alcohol, smoking and gambling are the three most well known vices. Almost as long as there have been any morally suspect items in American history, taxes have been implemented to fill the government’s pockets. With the downfall in the economy recently, the government has to look for different ways to increase their revenue, which typically involves raising taxes. The problem with raising normal taxes is that there will be a general discord with the public. The alternative is to raise taxes on sinful products and activities. This supposedly discourages individuals from buying or partaking in these activities. Typically, this form of taxation is easily accepted by the public because it only affects the partakers in the “sinful” activities. However, these taxes do not come without a price. Some consequences of increasing these taxes include the ill effects on one’s income, the health effects, and the possible effects on society’s actions.
The United States continues to increase the taxes on cigarettes, and according to the FTA, the mean amount taxed per each cigarette carton is 110.69 cents, or around $1.11 per pack. The highest tax is imposed in New Jersey at around $2.58 a pack, and the lowest is about $.07 per pack in South Carolina. This means that for every carton of cigarettes you buy a large chunk of that money goes to the government and not to the stores that are selling them. The problem with this tax is that it affects the poor. Data shows that two thirds of all of the government’s revenue from the sale of tobacco products comes from those earning less than $40,000 a year, and not even 1 percent by those with an income of over $100,000 a year. Alcohol is heavily taxed as well. According to the Distilled Spirits Council of the U.S and Tax Foundation, the highest taxed state for spirits is Washington, at $19.23 per gallon; for wine is Alaska at $2.50 per gallon; and for beer is Alabama at $1.05 per gallon. This tax is the same for each level of quality of alcohol. For instance, a very nice bottle of wine is taxed at the same rate as a cheap boxed wine. These taxes are supposedly used to discourage people from using the products, but as the saying goes, no one has ever been punished out of their sins, so taxes shouldn’t be able to have the same effect. Other sinful activities however, like gambling on the lottery are actually encouraging the public to participate. In the past, the government has spent millions on advertising, and promotes the general public’s involvement. The more people participate in the lottery, the larger the revenue for the government.
The health effects of these vices are also an issue that the government has to address. There have been countless studies that prove that smoking causes cancer, heart disease and many other serious health issues. According to the American Cancer Society, smoking is the leading cause of preventable sickness and death. A recent study showed that 90% of all lung cancer deaths are caused by smoking, 30% of all other cancer deaths, and a significant amount of other deaths are exacerbated by smoking. The US Department of Health and Human Services found that one third of all middle age deaths are caused by smoking. These figures don’t even include the deaths from second hand smoking. The government has stated that increasing the taxation on cigarettes should decrease the amount of smoking, and much of the revenue can be put towards health care to help with the price of dealing with the effects of smoking. Alcohol is not as easy to put an exact numerical percentage on when it comes to death. For many, alcohol is a proven health benefit; a glass of wine at dinner is beneficial for the heart, reduces strokes and even dementia. About 18.5 million people abuse alcohol in the United States. This might seem like an exorbitant amount, but compared to the nearly 304 million people in the United States, it only computes to around 6% of the population. This small percentage consumes half of all alcohol, which in turn end up paying the majority of all of the alcohol taxes. The real health issue that comes with alcohol abuse really isn’t the effect on their body, but the possible health effect on society. Drunk drivers have about seven times higher of a chance to cause a fatal car accident than a driver that hasn’t been drinking. Although the data shows that most deaths during the accidents were the drinking drivers and their passengers, there is still a high number of deaths outside their vehicles as well.
Not only does America have to worry about their pockets shrinking, and health issues from the actual consumption of these products, but they also have to worry about the dangers from the outside society. History has proven that citizens will rebel against high taxes. Take for instance the Boston Tea Party. The British increased the tax for the tea that they shipped to the colonies, and the colonists responded by revolting and throwing all of the tea overboard. How does this have anything to do with a “sin” tax you might ask? Because tea has in it a very sinful substance: caffeine. Governments obviously haven’t learned their lesson. In New York, evidence shows that with the increase in cigarette taxes, there is a decrease in actual purchases from stores, and a higher amount of smuggling and crime. There have been hijackings of cigarette trucks (which interestingly enough has shown to be more profitable than robbing an armored truck), and illegal sales of cigarettes from Indian reservations, which sell cigarettes tax free over the Internet. It is actually a federal crime to engage in any form of interstate smuggling of cigarettes. Interestingly enough, since the passage of the Contraband Cigarette Act in 1978, there has been evidence that enforcement has fallen. There has been an increase in violence with every tax increase as well. As for alcohol, people have been smuggling alcohol over the borders for years now, being able to buy it cheaper in both Canada and Mexico. The border patrol attempts to counteract this, but with the number of vehicles crossing the borders each day there is going to be a few that slip through.
Even with the increases on taxes for “sinful” items, the government is still hurting financially, and they are looking for other ways to fill their coffers. What is next for the “sin” tax’s list? There has been much discussion on increasing the gas guzzler tax to include even more vehicles, and distinguishing between different grades of inefficiency. Recently, there has been talk of taxing fast food items, such as those with high sodium content, as well as sugary sodas. Apparently the government doesn’t believe that citizens can think on their own because the rationale for this new tax will be to discourage the public from eating and drinking such unhealthy items. Pornography and firearms, already a hotbed of controversy, have recently entered into an even racier spectrum: taxation. Oddly enough, the pornography industry would love to see their products taxed as this would require them to be recognized as a legitimate industry. On the other hand, the firearm industry laments the possibility. Some other off the wall ideas includes taxing charcoal starter fluid because it creates a large amount of smog, and even antibacterial soap because it creates resistant strains of bacteria.
Regardless of the product, if the government can place a tax on it, they will with relish. In an age where communication is instant, and the backlash of raising taxes can destroy an incumbent politician’s career in an instant, taxing sinful products can be a great compromise between the government’s need for cash, and the constituents’ reluctance to pay. Although there is a lot of controversy about what is taxed, and how the tax is applied, sin taxes are here to stay. As society evolves, it will be interesting to see what products become sinful in the near and far future.
Finance 
