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by talmand 3912 days ago
It's interesting how many times I see people not understanding the effects of taxes. Like the short-minded people that think they'll reap huge benefits from taxing cigarettes and base their budgets around it. But then people stop smoking or find alternative sources for cigarettes so that the huge windfall of tax income never happens. Now they are left with a huge hole in their budget.
1 comments

Did you consider the possibility that taxes on cigarettes are intended as an incentive to stop smoking and thereby lower the health care costs of treating long term smokers' various ailments?
Yes, but are you assuming that all tax districts had the same thinking? The situation I'm referring to up in the Northwest US, as I recall, was not considering that. Plus I'm sure there are other examples of budgets being based on taxes that didn't pan out, leaving a deficit in the budget.