Why are large taxes placed on alcohol and tobacco

Question

Why are large taxes placed on alcohol and tobacco

Answer 1

Because the government wants to make money on people's vices.

They often use the argument that higher tax discourages use. Other arguments are that the tax revenue is used to pay for programs that help break addiction to the same substances they are taxing...weird argument.

They tax gambling to pay for education. Mostly state lottos. I don't know what other legal gambling tax goes to. I am sure that states like Nevada collects big on gambling.

I personally think that the government just wants a cut of the profit. Tax is on way to ensure that they get money. It doesn't matter what they use it for, they have to get the money somewhere.

If people didn't drink, smoke or gamble the govt. would tax something else. Like maybe air...they tried to tax tea once and it started a war...

Answer 2

is called a SIN tax because its easier to get people to agree to tax things that they think aren't good for you. Not everybody smokes thank goodness or drink so the goody goody folks don't argue about those taxes.

In Canada those taxes pay for the nations health care system and are even higher than in the US.

Another favorite tax that somebody else always has to pay is a hotel tax because thay are usually visitors from out of town.

Answer 3

well, to raise money.

Just follow the money.

Answer 4

possbbly so that people avoid it or atleast reduce its use.

Answer 5

cos they want people to stop doing it and its bad for you

and you can die from it!!

Answer 6

Because they can!  The people just seem to accept high tax on things that are considered "vices".  The argument seems to be that the tax will pay for the cost of treating the results of use of those products.

Answer 7

Both of these substances are addictive and pose serious health risks to users. By levying high taxes on these substances the government hopes to deter or at least minimize consumer usage.

Answer 8

I don't think it has to do with the government wanting to spare people from bad habits. Rather, I think the taxes are high due to the fact that smoking and drinking are addictive habits, and people will not give them up readily, even if there are tax hikes once in awhile. So, in other words, there will always be a market for these products, so the government can get away with charges exorbitant taxes, because enough people will still purchase these products. Think of it like gas prices; yes, they are terrible, but people have to drive, so they pay the prices. Smokers/Drinkers may look at their particular vice in a similar matter; no matter how high the cost, they are still going to crave it!

However, on the flipside, some people believe that taxes will help people quit smoking/ never pick up the habit. I'd argue that this is debatable. Drug users pay whatever they need to to get a fix, so why assume people using alcohol and nicotine won't do the same? Here is a link to an article that supports this point of view. http://www.themonitor.com/news/tax_4206_...