Sin tax

A sin tax (also known as a sumptuary tax, or vice tax) is an excise tax specifically levied on certain goods deemed harmful to society and individuals, such as alcohol, tobacco, drugs, candies, soft drinks, fast foods, coffee, sugar, gambling, and pornography.[1] In contrast to Pigovian taxes, which are to pay for the damage to society caused by these goods, sin taxes are used to increase the price in an effort to lower demand, or failing that, to increase and find new sources of revenue. Increasing a sin tax is often more popular than increasing other taxes. However, these taxes have often been criticized for burdening the poor and disproportionately taxing the physically and mentally dependent.[2]

  1. ^ Staahl, Derek (21 April 2017). "Bill would block porn on new phones, computers unless consumers pay a tax". AZfamily.com. Retrieved 11 July 2017.
  2. ^ Winck, Ben. "'Sin taxes' are meant to push people away from booze and cigarettes, but they mostly hit those who can least afford to pay". Business Insider. Retrieved 8 November 2023.