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Selling the Sin Tax
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  Governor Lynch’s latest plan to address the state’s budget shortfall would involve raising taxes on cigarettes, reducing the state discount to wine retailers, and introducing a brand new tax on charity poker games. We’ll unpack the economics of so-called “sin taxes” and explore what these increases could mean for consumers, businesses and the state budget. Guests
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As one of the off-premise licensees affected by the proposed discount plan, one of my many objections to its passage is the fairness of the whole proposal. Whether one is a 'mom and pop' or as in my case, slightly above the 'threshold', or a 'big box', all wine merchants are being asked to bear a burden that hard liquor, beer and the state liquor stores are exempt from. We're already at a competitive disadvantage. How will our declining revenues help raise the state coffers?
I'm confused about this subject. If the economy continues its downward trend, won't people spend less on all the "sinful" things the state is taxing to insure their fiscal stability?
Taxes on alcohol & tobacco are prepaying for the medical expenses that the public will pay later. Estimates are that from 1/4 to 1/3 of all hospital beds are occupied by people suffering from the consequences of alcohol or tobacco addiction. Our health care costs are rising in large part due to the later effects of these drugs.
These taxes are not regressive, because they are taxes on voluntary activities.