Federal and local governments are taxing our vices in a big way and it’s really adding up. This “sin tax” is added to goods or services that are considered to be unhealthy like smoking, drinking, playing the lottery, etc.
Nevada has the highest revenue from sin tax, racking up over a billion dollars from casinos. Rhode Island and Delaware follow closely behind with about half a million dollars from lottery. But it’s cigarettes that get us every time; they are the most heavily taxed consumer good in the world and it’s a big business. 58% of the price of cigarettes is a result of taxes. There is a flat federal tax of $1.01 per pack plus local taxes plus the price of the pack itself. New York City currently holds the top spot for most additional fees with a state tax of $4.35 and a city tax of $1.50 adding an extra $5.85 per pack.
In 2012 Colorado legalized the production, sale and use of recreational marijuana. A vote for the proposed tax structure will be held in November 2013. The taxes proposed would put an eighth of an ounce of marijuana at $23.50, between a six pack of beer and a pack of cigarettes. If the tax structure is approved, an eighth of an ounce of marijuana would count for 21.2% of vice taxes in Colorado.
Explore the world of sin taxes in this infographic, presented by online-accounting-degrees.net.
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