Sin Tax
 |
Definition of 'Sin Tax'A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. These type of taxes are levied by governments to discourage individuals from partaking in such activities without making the use of the products illegal. These taxes also provide a source of government revenue. |
 |
Investopedia explains 'Sin Tax'Sin taxes are typically added to liquor, cigarettes and other non-luxury items. State governments favor sin taxes because they generate an enormous amount of revenue and are usually easily accepted by the general public because they are indirect taxes that only affect those who use the products. When individual states run deficits, the sin tax is typically one of the first taxes recommended by lawmakers to help fill the budget gap. |
Related Definitions
Articles Of Interest
-
Tax Tips For The Individual Investor
We give you seven guidelines to help you keep more of your money in your pocket. -
How Influential Economists Changed Our History
Find out how these five groundbreaking thinkers laid our financial foundations. -
Socially Responsible Investing Vs. Sin Stocks
Can your principles make you richer or poorer? Find out if it pays pick your portfolio based on ethics. -
The Evolution Of Sinful Investing
Like beauty, whether something is sinful often depends whom you ask. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
How To Deduct Your Job Search Expenses
With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ... -
Are IRS-Prepared Tax Returns The Solution To Our Tax Woes?
The government is considering letting the IRS do your taxes for you. While this may sound great, there are plenty of reasons why you may not want to trust the IRS to calculate your tax return. ... -
Approved: Paying Online Sales Tax
States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.
Free Annual Reports
