What is the tax of sin?
Sin tax is a tax on certain goods or activities that many people perceive. It is common to think about alcohol and tobacco as high taxes, and partly incomes obtained from these taxes help to balance some of the negative effects that can cause health problems. Such taxes are not new and have a rich history in the world. While increasing income, they are also designed to discourage the reflection, even if it is not quite effective.
In the past, the tax of sins was called other names, such as a tax tax or the Act on the Luxury Act. The purpose of these laws was to prevent people from behaving in a certain way because it was more expensive. Despite this objective, the law of exammity tended to be a dividing force in society, which made access to a certain convicted goods or service inaccessible to lower classes while transforming the use of goods and services by richer individuals into something like a symbol. Moreover, for example, taxes collected by prostitution that the Popes were collected as part of their support.
Another name for the tax of sin is a pig's tax, although this term is a bit specific to certain taxes placed in some markets. If it has a market called negative externalities or negatives of consumers, such as alcohol driving accidents, lung cancer, or severe pollution, taxes on markets or what they sell can reduce negative externalities. A higher tax can discourage consumption and reduce the negative effects that create concerns and concerns.
Some people would also define sin tax as a luxury tax. In some definitions, the external depiction of luxury, such as the purchase of an expensive car or aircraft, or stay in very expensive locations of the holiday, rightly taxed. It is not that in these cases it is so discouraged, but the multi -trees whoThey plan to spend a lot of money on luxury, they can certainly afford higher taxes. Yet some of them depict deliberate manifestations of imaginative consumption as borderline sinful.
What each region considers as a tax of sin may vary. Alcohol and tobacco are common goals, but also activities such as legal gambling and prostitution. Some argue that taxation does not have a beneficial effect and instead results in an increase in illegal activities. There may be more interest in gambling, smoking or replacing with prostitutes when people do not have to pay additional money, and there are certainly organized criminal groups without taxation that provide these things. On the other hand, many people either give up those things that are too taxed, or pay tax, because their behavior would remain legal.