Saturday, April 04, 2009

Sin Tax Error

I'm sure everyone's read the stories and the opinions, pro and con, about the biggest ever tax hike on tobacco in history. (And it is tobacco, not just cigarettes. In fact, the taxes on cigars are going up at an even higher rate in some cases.) Problem is, most of the money goes to increase funding to S-CHIP, the childrens' health insurance program. That's not something that's suddenly going to need less money if smokers quit en masse. This tax has two goals that are at odds with each other: to get more people to quit smoking (and buying cigarettes), and to fund government programs. If and when the first goal is accomplished, the revenue stream dries up for the second. And what does the government do then? Well, if the fiscal conservatives are in charge, they cut spending commensurately. But if the government acts in character for recent times, that's not going to happen. And in the end, when everyone's taxes go up to keep the money flowing in, even the saints will be paying the sin taxes.

1 comment:

  1. Grow your own tobacco. It's perfectly legal, and grows in every state in the union. www.seedman.com sells 40 seed varieties, as well as leaf conditioners and flavorings, and even all the parts to make a DIY drying kiln. Check out my flickr for diy hydroponic garden boxes to start the seeds for under 10 bucks. I may give it a try. Stick it to the man.

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