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Sometimes, a tax can effectively be insurance for liability. Sin taxes, e.g. alcohol or tobacco tax, in part help pay for the social cost of those activities.
by anonporridge 4y ago
Sometimes, a tax can effectively be insurance for liability.
Sin taxes, e.g. alcohol or tobacco tax, in part help pay for the social cost of those activities.
- thrill 4y agoNo, that's just how they're sold.
- zibby8 4y agoAs the name implies, sin taxes are taxes to discourage use. Tobacco smoking, for instance, likely saves tax payers money because: 1) Smokers pay more in taxes through tobacco purchases. 2) Smokers die way earlier, so there are less social security payments and fewer medical expenses.