The government is making a profit off of our bad habits. A “sin tax” is a tax added to any products or services that are considered to be unhealthy, and it’s a big business. In 2011, states collected $50 billion in sin taxes alone.
Cigarettes are the most taxed consumer good in the world; 58% of the price of cigarettes is a result of excise taxes. Federal tax is $1.01 per pack, plus state sales tax, plus city/county fees and taxes all on top of the price of the cigarettes themselves. New York City is currently the most expensive city to smoke in, with the highest city and state taxes at $1.50 and $4.35 respectively. Massachusetts and Rhode Island follow close behind in their additional state fees at $3.51 and $3.50.
In 2012, Colorado made the production, use and sale of recreational marijuana legal. This month, the proposed tax structure will be voted on. If passed the tax could create some serious revenue putting it before beer and wine in the total percentage of sin taxes in Colorado.
Does all this taxation make you want to drop your vice or just call for a tax reform? Check out this infographic and let us know what you think in the comment section!
Source: Sin Taxes: Taxing Your Vices