Question:

Why do drinks have taxes on them?

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I know it sounds funny but it annoys me even though it's just a few more cents. We consume it like food and food doesn't have tax on them. If it has anything to do with the nutrition or that we don't need it, then why does candy not have tax?

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  1. Such "Consumption Taxes" or "Sin Taxes" are actually Excise Taxes imposed on items like alcohol which are not usually subject to decreases in demand.  As the dramatic increases in tobacco taxes over the past ten years have demonstrated, the government is well aware that it can raise Excise Taxes without fear that it will lose revenue from consumers who will simply choose not to purchase items subject to so-called "Sin Taxes."  On the other hand, when the government goes too far with these sorts of taxes, a black market develops, crime spreads, and taxes have to be raised again to deal with resulting problems.  Excise Taxes are generally quite effective at raising revenue in the short term, but are fraught with long-term problems.


  2. Ask your elected officials.  If we buy it they tax it.

  3. Every state has their own laws and taxes.  Some states tax food and others don't.  Get used to it; it's just how things are.  

  4. Your state representatives decide what to tax and what not to tax.

  5. Different states have different rules about what is taxed and what isn't.

    At some point in your state's history, someone must have proposed taxing food and drink, and someone else might have pointed out that the people wouldn't stand for that, so as a compromise, they decided to tax only drinks but not food.

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