With their U.S. roots in a 1790s Whiskey Rebellion, sin taxes vary when looking at current consumption and their state revenue.
While states find it’s tough to predict marijuana tax revenue, they can assume that higher rates will nudge consumers toward black markets.
Involving us individually and as a community, sugary drink taxes create nudges that result in a long list of costs and benefits.
Looking at the Philadelphia sugary drinks tax, we would find it did not accomplish many of its goals in three major categories.
Like all sin taxes, the Philadelphia sugary drinks tax has had an unpredictable impact on revenue and the alternatives that people select.
Our everyday economics includes developing nations, human capital, environment, behavioral economics, consumer spending, health care,incentives & sin taxes.
Deciding whether they want revenue, prohibition or smuggling, lawmakers have to decide how high to make sin taxes on items like cigarettes.
To avoid inelastic demand, a sugary drink tax would need to increase price substantially. Current taxes that average less than 5% have little impact.