1. Tobacco and Alcohol Excise Taxes for Improving Public Health and Revenue Outcomes : Marrying Sin and Virtue?
- Author
-
Bird, Richard M.
- Subjects
TAX RATES ,ALCOHOL TAXATION ,SOCIAL WELFARE ,TAX ,CHILDREN ,TOBACCO TAXES ,FAMILIES ,TAX INCIDENCE ,INFLATION ,TAX RECEIPTS ,EXTERNALITIES ,IMPLEMENTATION ,EFFECTIVE TAX RATES ,SALES TAXES ,EVASION ,TAX STRUCTURES ,ALCOHOL TAXES ,GAMBLING ,GOVERNMENTS ,CRIME ,EARMARKED TAXES ,TAX LAW ,ADDED TAX ,ISOLATION ,HEALTH OUTCOMES ,GOODS ,HEALTH ,SMOKING ,INTERVENTION ,AGED ,TRANSPARENCY ,USE TAXES ,PRODUCT TAXES ,SIN’ TAX ,TAX REFORM ,TOBACCO TAX ,FINANCE ,HEALTH SPENDING ,TAX REVENUE ,TAX POLICY ,HEALTH EFFECTS ,VALUE ADDED TAX ,TAX REDUCTION ,LOCAL FINANCE ,INDIRECT TAXATION ,PUBLIC EXPENDITURES ,SOCIAL RESEARCH ,REGRESSIVE TAXES ,SERVICES ,SIN’ TAXES ,RISKS ,PER ,MARKET ,EXCISE TAXES ,MARKETING ,HEALTH PROMOTION ,ECONOMIC DEVELOPMENT ,UNIFORM TAXES ,TAX RATE ,STRESS ,SOCIAL POLICY ,TAX SYSTEMS ,TAX CHANGES ,PUBLIC FUNDS ,TAX BASE ,EXCHANGE ,ACCOUNTING ,ALTERNATIVE MINIMUM TAX ,TAXATION ,SIN TAX ,PUBLIC ECONOMICS ,HEALTH POLICY ,EARMARKED TAX ,LOCAL GOVERNMENTS ,ADDICTION ,HEALTH CARE ,GOOD ,DIFFERENTIAL TAXATION ,REGULATION ,REVENUE ,NUTRITION ,ALCOHOLISM ,PUBLIC HEALTH ,TAXES ,EQUITY ,SMOKERS ,PUBLIC REVENUES ,SPENDING ,EXERCISES ,TAX REVENUES ,EXPENDITURES ,TAX INCREASES ,PSYCHOLOGY ,ALCOHOL CONSUMPTION ,INTERNATIONAL BANK ,PEOPLE ,PUBLIC ,MANAGEMENT ,KNOWLEDGE ,LABOR ,REVENUE SOURCES ,ECONOMIC ANALYSIS ,ECONOMIC EFFICIENCY ,MACROECONOMIC CONDITIONS ,TAX COMPETITION ,PASSIVE SMOKING ,LAWS ,TAX BASES ,SIN TAXES ,LEVY ,REVENUES ,TAX ADMINISTRATION ,TAX POLICIES ,TAX BURDENS ,WEIGHT ,TAX EVASION ,EXCISE TAX ,TAX SYSTEM ,EXPENDITURE - Abstract
Excise taxes on alcohol and tobacco have long been a dependable and significant revenue source in many countries. More recently, considerable attention has been paid to the way in which such taxes may also be used to attain public health objectives by reducing the consumption of products with adverse health and social impacts. Some have gone further and argued that explicitly earmarking excise taxes on alcohol and tobacco to finance public health expenditures—marrying sin and virtue as it were—will make increasing such taxes more politically acceptable and provide the funding needed to increase such expenditures, especially for the poor. The basic idea—tax “bads” and do “good” with the proceeds—is simple and appealing. But designing and implementing good “sin” taxes is a surprisingly complex task. Earmarking revenues from such taxes for health expenditures may also sound good and be a useful selling point for new taxes. However, such earmarking raises difficult issues with respect to budgetary rigidity and political accountability. This note explores these and other issues that lurk beneath the surface of the attractive concept of using increased sin excises on alcohol and tobacco to finance “virtuous” social spending on public health.
- Published
- 2015