You can’t have it both ways. You get less of what you tax. And the state is trying to make money off of “sinful” goods.
BTW: good for Idaho.
A recent Pew Research Center report revealed that Idaho has some of the lowest revenue collected from sin taxes in the United States included in the total state budget, ranking 44th.
In terms of state revenue, sin taxes, also known as excise taxes, account for 2 percent of the state’s budget. Alcohol sales are only 0.2 percent of this, while tobacco sales and gambling revenue make up 0.9 percent.
Nevada was listed as number one on the list with 12 percent of annual state revenue coming from sin taxes, while West Virginia, a similar-sized state to Idaho, ranked number three at 8 percent.
According to the Pew report, even with these economic numbers, states shouldn’t rely on the sin tax to account for revenue. Nationwide, tobacco excise tax totals totaled $14.3 billion, while alcohol tax revenue brought in $9.6 billion.
Sin taxes remain a controversial subject throughout the country. Some argue it’s a way to rid the public of vices. But according to the Pew report, that is not always the best method.
“This is the paradox of sin taxes, the class of taxes that includes tobacco. These extra dollars and cents levied on products and activities considered detrimental to consumers — traditionally tobacco, alcohol, and gambling — are intended to accomplish two contradictory goals: Like all taxes, they generate revenue for the taxing entity, but they also aim to deter the behavior being taxed — which can ultimately negate the first goal,” the report said.