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Isnt the point of "sin taxes" to offset externalities? If the externalities decrease then so should the tax. If governments are looking for a steady source of i
by bryan0 2y ago
Isnt the point of "sin taxes" to offset externalities? If the externalities decrease then so should the tax. If governments are looking for a steady source of income then "sin taxing" seems like the wrong approach.
- lesuorac 2y agoI think a common argument is that it is to offset externalities but in reality I've never seen a sin tax that is based on the cost of the externality. The tax on cigarettes is not pegged to the expenditures on COPD and other diseases and etc. Afaik, all sin taxes go into the general coffers so they can't really be based on externalities. Plus the fuel tax doesn't even pay enough for road repair never mind any externalities (especially considering there's often no sales tax on fuel).
- loeg 2y agoNope, not the only point. Just adding some cost / friction to the "sin" is a goal.
- akira2501 2y agoIt's a signal that existing funding mechanisms are no longer capable of supporting governments demands. So governments have gotten very creative at "off label deficit spending."
- creer 2y agoAre there any governments anymore that are not grasping at the most improbable straws for revenue? (Actually, no, just typing this, there are quite a few. Just not the ones around me certainly.)