Should sin taxes be increased in areas such as alcohol and tobacco to cover the increasing cost of medical care? Sin taxes have been in effect for centuries, while the revenue from these taxes are high other recent efforts to impose sin taxes have sputtered. With the revenue that can be received from Sin taxes should it be used in areas that our country is in need to help the people. Many physicians feel this should be done to help with healthcare amongst our society. If this is done will it help? Some argue yes it will, but others feel it will hurt low-income families and make it more of strain on our society.…
Tobacco has been a cash crop in America since the first colonists settled here. In fact, many historians have said America would not exist as we know it without the original routes of tobacco here. While there are significant health risks with tobacco, it is an essential part of the American economy. In 2011, the huge sum of 17,653,708,000 dollars were collected in revenue from taxation on cigarettes (Tobacco Tax Revenue). Apart from this immediate benefit of the taxes, it also dissuades people, particularly youth, to smoke. “Every 10 percent increase in the price of cigarettes reduces consumption by about 4 percent among adults and about 7 percent among youth”…
The big question with increasing cigarette taxes is will it really have the desired effect of decreasing the demand. There are two sides to this. One side says that the price is most defiantly elastic in demand. However, there are others who say that once a smoker always a smoker, no matter the cost. Some of the facts to support the decrease show the highest change in youth smokers. For example, for every ten percent increase in the price of a pack of cigarettes, youth smoking rates overall drop about seven percent. Another shocking effect taxes had on cigarette consumption was in 1985 where the tax increase had more of an effect on the consumption than did the health scare created by the government in the 1960’s in Surgeon General’s reports.Although I was not able to find reliable sources to prove the demand to be inelastic, from what I have observed, initially people cut back or attempt to quit but the diehard smokers eventually give in and continue to pay the increased amount.…
In the article ‘Cigarette tax hike sparks panic buying’, Hall (2010) discusses the effects of tax increase on cigarettes. The government has decided to raise the tax on cigarettes by 25%, costing $2.16 more on a pack of 30 cigarettes. This government intervention is an attempt to stop people from smoking and reduce the health bill caused by those who smoke. The increase in tax is expected to save $5 billion more of the people’s tax dollars and the government decided that it will be put into a better use for its health and hospitals reparations. This contractionary fiscal policy is expected to reduce the total tobacco consumption by approximately six percent and drive down the number of smokers by 87,000.…
Common examples of sin taxes are taxes on cigarettes and alcohol. Choosing to consume these goods is an individual decision; should the government be involved and actively attempt to reduce their consumption?…
The effectiveness of government policy aimed at reducing the negative effects of smoking on health. One of the Government’s justifications for its attempt to reduce smoking is by increasing the price of a packet of cigarettes to reduce the number of smokers. Local cities and townships are banning smoking in certain areas such as all state and local government offices and restaurants. As stated before increasing the tax on cigarettes has help some smokers to stop smoking but there could be more done.…
Cigarettes business is one of the most profitable industries in the world. The government receive huge amount of taxes from cigarettes companies and it actually uses the money to help fund the welfare program, in which a lot of people can benefit from. Making production and sale of cigarettes illegal will definitely hurt the income of the government, and add pressures on many people who are in need of welfare programs.…
They argue the laws are appropriate to promote the health of the majority of citizens. According to author Rabin, “In 2006, New York City 's overall adult smoking rate didn 't change. But smoking decreased among men and Hispanics” (Rabin 54). This has shown that since the act was put into place it has positively changed the outlook of many indivuduals. Opponents of the Act include smokers,cigarette manufacturers, and business owners.The manufacturers point out that cigarettes fall under the category ‘sin’ goods, and are heavily taxed, accounting for a large share of Sumptuary tax revenues. Business owener’s worry that the ban leads to a negative affect to their business, which will decrease their reveneues. Also, smokers have felt that their rights have been infridged upon, now with limited access to places where they could have…
Tobacco laws have started as early as the 1970s (ACOSH, 2010). Government has implanted laws, such that of the Tobacco Act (1987), which goals are to discourage the smoking of tobacco, encouraging non-smokers; in particular young people to not start smoking, to limit the exposure of children and young people to the persuasion of smoking, to encourage and assists smokers to give up smoking, and finally the promotion of good well being and illness prevention. The tobacco act of 1897, had over the years since, been reformed, and it seems like there is no stopping now. To further reinforce its initial goal, recently the Australian government reformed this Tobacco Act. The Australian government had announced, the 25% increase in tobacco tax, plain…
In hopes of eliminating one cause of obesity, the Soda Tax was created proposing a higher tax on sweetened beverages. The soda tax is part of the “sin” taxes. According to the Annenberg Institute for Civics, sin taxes are taxes on products considered harmful to a person’s physical or moral health. Sin taxes have been used successfully to discourage habits such as smoking (Annenberg).…
What is probably the fastest growth in taxation in the United States, cigarette excise taxes levied by both the Federal and state governments have shown a distinctive impact relative to supply and demand, equilibrium of price and quantity, and elasticity of the product. The intent of the tax is twofold; to reduce the rate of cigarette usage and to increase revenues for healthcare programs related to the effects of cigarette smoking, such as cardiopulmonary disease, respiratory disease, and illness related to second-hand smoke.…
E.9. Duties on cigarettes and manufactured tobacco products have remained constant since 2005. In the meantime, smoking prevalence has increased, especially amongst youths aged 18 to 29. To discourage this trend, I will raise the excise duties for cigarettes and manufactured tobacco products by 10%. (Refer to Annex A-5.)…
I am so glad of the very purpose of passing the sin tax bill which is to protect the health and save the lives of the countrymen. This simply means that the government officials are concern about the good health of all Filipinos but this doesn’t mean that I am into this bill; for some reasons that the government or most of the senate themselves failed to look unto.…
As the majority may already know, smoking and drinking are responsible for numerous deaths annually. Smoking causes lung cancer, heart disease, stroke, asthma, premature death, and many more. An ingredient present in cigarettes called nicotine makes it very addictive. Although alcohol is not as addicting as smoking, in the long run, however, alcohol causes liver disease, high blood pressure, digestive system disorders. Moreover, a person who is intoxicated may cause road accidents, fire injuries, and may even commit suicide. With that being said, the Sin Tax Bill would sound like an effective way to lessen the consumption of sin products such as cigarettes and alcohol. However, it will not actually be effective as it should be, especially in the Philippines.…
The sin tax reform measure will definitely raise the prices of cigarettes and alcoholic beverages, but there won't be an immediate and marked decrease in the number of smokers kicking the habit just because a stick of Marlboro Lights – for instance – has become more expensive.…