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Hate The Sin, Love Taxes Sinners Pay
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Published: February 17, 2008
Updated: 02/15/2008 06:33 pm
Even though Florida voters just approved a referendum to lower property taxes for some homeowners, legislation has been introduced to raise the taxes elsewhere: on cigarettes. Rep. Jim Waldman, D-Coconut Creek, has introduced a bill to raise the tax on cigarettes by $1. Sen Ted Deutch, D-Boca Raton, plans to introduce a similar bill in the Senate.
Such sin taxes - or "target taxes" as they are now commonly called - are levied by governments to discourage individuals from partaking in such activities without making the use of the products illegal. They also generate a lot of revenue, and governments favor them because they are indirect, easily accepted by the general public, and the taxes are on "bads," not goods.
More and more sin taxes are being sold to the public as a means of paying for a societal problem, but too often the nexus between the tax and its purported goal is broken. Excise taxes on cigarettes, for instance, are often sold as a means to fund smoking-cessation and tobacco-education programs but eventually used to plug budget holes.
Even when the nexus remains intact, there is often no connection between the intended beneficiaries and the target tax. A new tax proposed by state Sen. Ronda Storms of Brandon is a good example.
'Pole Tax' Lands In Lawmakers' Laps
Storms, along with Rep. Rick Kriseman, D-St. Petersburg, has introduced legislation to tax guys who patronize strip joints a "pole tax" of $1, which will be used to give low-income nursing home residents more spending money.
What's the connection? Storms has apparently carried the grudge she has against adult establishments from the Hillsborough County Commission to the Florida Legislature.
But it could be worse. In Texas beginning Jan. 1, strip clubs began imposing a $5 tax on each visitor. The revenue generated by the Texas $5-per-customer levy will go toward helping rape victims.
That's certainly a worthy cause, but it implies there's a link between strip-club patronage and sexual assaults, which is dubious.
Good Causes, Bad Policies
But as a recent article in The Economist magazine points out, "Such targeted taxes seem to be in vogue at the moment."
The mayor of San Francisco wants retailers to pay a fee for selling sugary soft drinks. The revenue would fund a city initiative to encourage healthy eating and exercise.
A state legislator in Wisconsin wants to raise more money for juvenile justice by taxing video games.
And last year Congress wanted to pay for the expansion of the State Children's Health Insurance Program (SCHIP) by increasing federal tobacco taxes (President Bush vetoed the bill). So wouldn't government have a vested interest in ensuring that Americans continue to smoke?
That's the problem with these sin taxes: They are an unreliable source of revenue dependent on undesirable activities.
Still, there's one activity that's been exempt but might be ready for taxation: eating. Americans are fatter than ever, so, using the tobacco model, let's tax food. That way people will eat less, and the money generated could be used to promote good health.
It's just a thought, but it's worth asking who is more gluttonous: overweight Americans or governments constantly seeking new ways to feed their own insatiable appetites.
Joseph H. Brown is a Tribune editorial writer.
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