this post was submitted on 04 Oct 2023
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If the government insists on high rates of taxation for the reason that the product has a high potential for harm, then shouldn't the use of that tax revenue be mostly, if not entirely, re-directed towards harm reduction programs around that substance or product? How can anyone possibly argue any other use for that revenue? When the revenue generated by 'sin taxes' is used for other unrelated purposes, they are effectively exploiting the users by recognizing that they will continue to be a source of revenue because the product is habit forming or addictive. The last time I checked on the revenue generated by tobacco taxes, only ~11% was spent on harm-reduction programs related to tobacco use and the remaining 89% was just paying for other government projects totally unrelated to tobacco.
To suggest that the solution is to further raise the taxation rates rather than properly allocating the current revenue is immoral and illogical IMHO.