Definition of Sin Taxes
The government is always trying to find ways to raise revenue, and has resorted to sin taxes for hundreds of years. A "sin tax" refers to an unusually high tax on products and practices generally thought to be unhealthy or morally questionable. Voters often support the passage of such taxes as a way to discourage consumption of certain products, especially if they're not heavy consumers of said products themselves.
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History -- Whiskey Rebellion
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In 1791, Alexander Hamilton, the first secretary of the U.S. Treasury, encouraged Congress to charge an excise tax on distilled spirits. This first American sin tax helped pay debts incurred in the Revolutionary War. In 1794, the United States faced its first uprising of angry taxpayers: the Whiskey Rebellion. After a few months of violence, the rebellion was quelled and a precedent was set for the federal government to levy and collect taxes nationwide.
Modern Sin Taxes
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Some states want to impose a "pole tax" on strippers. High taxes on alcohol, cigarettes and gambling establishments are common. Legislators are considering expanding which unhealthy practices can reap extra-high taxes. As of 2010, New York, Colorado and Washington have discussed taxing candy and soft drinks. Nevada has discussed the expansion of legalized prostitution in legislative sessions. Georgia, Pennsylvania and Texas are proposing "pole taxes" for consumers of strip clubs, pornography and escort services.
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What Critics Say
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Opponents question the fairness of these taxes, which they say claim a greater percentage of a poor person's salary than a rich person's. Higher taxes might drive business underground, creating a black market that will lead to crime and decrease the profits of legitimate sellers. It also puts policy makers in a moral gray area. While they claim to want to decrease unhealthy behaviors, they will be tempted to encourage them in order to increase revenue.
Motivations
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Many Americans question both the motivations of policy makers and their right to dictate what adults should or should not do. According to writer Ethan Epstein, "There is an inherent condescension and paternalism to sin taxes." A 2010 Rasmussen report poll alleges that only 17 percent of respondents believed that politicians who support sin taxes are more concerned with public health than in raising revenue.
What do the People Want?
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Many parents doubt that taxing candy will curb obesity. According to the Rasmussen report, an overwhelming 86 percent of adults claimed that what people choose to eat falls outside of the government's domain. Only 5 percent believed these health choices are the government's responsibility. Interestingly, the survey found that adults who had children living at home were more skeptical that sin taxes on candy and soda would effectively reduce obesity than those without children at home.
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References
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