Friday, January 13, 2023

Sin tax

There is a term not used anymore called sin taxes. These were taxes on tobacco and alcohol used to fund various government programs. In today's world you can add legalized gambling, marijuana and lotteries. The government collects $25 billion on lotteries, alcohol and tobacco bring in $18 billion, gambling $30 billion and the new kid on the block marijuana $11 billion. This money comes mostly from the low income groups and senior citizens. Statistics are used to show that low income people pay very little income tax but they do pay for most of the sin taxes along with social security and Medicare. Add to that sales tax which is the same for all income groups and the low income people get hurt the most since they spend almost all of their income.

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