Thursday, November 18, 2004
What smokers owe society
[Robert A. Levy, "Smokers Already Are Paying a High Cost for Their Habit," The Cato Institute, 17 November 2004.]
With the Governor's proposed cigarette tax hike, "sin taxes" have become a hot topic in Kansas. Sebelius has pointed to the high costs of smoking as rationale for increasing the tax, but does the argument hold water? Robert Levy of Cato isn't so sure:
[There are] three types of costs: Private internalized costs can be eliminated by choosing not to smoke. Externalized costs of secondhand smoke can mostly be redressed by recognizing private property rights and providing for smoke-free areas on government property. Externalized costs of pooled risk programs can be remedied by permitting rational discrimination against smokers who impose those costs.
Yes, there may be some residual cost for which smokers should be accountable. But don't forget that state and federal excise taxes already yield revenues of 76 cents per pack and smokers have been socked with a quarter-trillion-dollar cost payable to state governments under the terms of the Master Settlement Agreement. In short, smokers more than pay their way.
[Robert A. Levy, "Smokers Already Are Paying a High Cost for Their Habit," The Cato Institute, 17 November 2004.]
With the Governor's proposed cigarette tax hike, "sin taxes" have become a hot topic in Kansas. Sebelius has pointed to the high costs of smoking as rationale for increasing the tax, but does the argument hold water? Robert Levy of Cato isn't so sure:
[There are] three types of costs: Private internalized costs can be eliminated by choosing not to smoke. Externalized costs of secondhand smoke can mostly be redressed by recognizing private property rights and providing for smoke-free areas on government property. Externalized costs of pooled risk programs can be remedied by permitting rational discrimination against smokers who impose those costs.
Yes, there may be some residual cost for which smokers should be accountable. But don't forget that state and federal excise taxes already yield revenues of 76 cents per pack and smokers have been socked with a quarter-trillion-dollar cost payable to state governments under the terms of the Master Settlement Agreement. In short, smokers more than pay their way.
Comments:
Post a Comment
