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[USA] How can sales tax brackets affect purchasing behavior when prices are pre-tax?
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this post was submitted on 22 Sep 2024
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Things intended to incentivize healthier behavior are generally referred to as vice taxes, and yeah, we don’t do well at those.
We have vice tax to discourage smoking, drinking alcohol and probably a few other things but they’re completely ineffective. They really need to be a lot higher and to be more well known. For example, I have no idea what the alcohol tax in my locale is so it does not affect my behavior. Actually, the neighboring state advertises no alcohol tax so the only affect might be taking a road trip to stock up on alcohol. I do support the idea of raising that until it hurts to choose alcohol, except that it would hurt most those who can afford it least.
I like the idea of vice taxes in general, as a way to leverage the power of capitalism to improve public health. I dont know if they really work though, just that we haven’t gone far enough to see if it would work