April 22, 2004
THE WAGES OF SIN:
A Texas Bid to Shift School Finances to 'Sin Taxes' (DAVID CAY JOHNSTON, April 20, 2004, NY Times)
How much money Texas spends to teach children reading, writing and arithmetic may soon depend in part on how successful women like Vanity, Destiny and Rio of the Yellow Rose, a topless bar in this state capital, are in attracting customers.Gov. Rick Perry called the Legislature into special session Tuesday to change the way public education is financed in Texas. He wants to give billions of dollars in property tax reductions to the most affluent homeowners while making up part of the revenue loss through a vast expansion of legal gambling, increasing cigarette taxes by $1 a pack, raising taxes on alcoholic drinks and collecting a tax of at least $5 each time a patron enters a topless bar.
The governor's plan faces an uncertain future, but it seems likely that Texas will adopt at least some of his "sin tax" proposals. Mr. Perry is a Republican, and Republicans have comfortable majorities in both houses of the Legislature.
The idea that the education of future generations should depend on increasing sin taxes is not unique to Texas. Across the country, politicians, eager to avoid anything that looks like a tax increase, are turning to levies on what Governor Perry calls "unhealthy behaviors" to finance education.
Kentucky, Maryland, Missouri, Tennessee, Utah and West Virginia are among the states that have shifted part of the cost of schooling from income, sales and property taxes to levies on gambling and nude or topless dances in the last few years.
Other states are considering such plans, including New York, where Gov. George E. Pataki is promoting more gambling to raise $2 billion annually for public schools, like making video lottery terminals more widely available.
"What we are seeing is renewed interest across the states in taxing vices," said Bert Waisanen, a tax policy specialist at the National Conference of State Legislatures.
It's better to ban most such vices, but if you're going to allow them then by all means tax the heck out of them. Posted by Orrin Judd at April 22, 2004 9:11 AM
Taxes also have the advantage of being easier to enforce than a ban.
Posted by: mike earl at April 22, 2004 9:46 AMRepublican State Comptroller Carole Strayhorn -- who has been a more vicious critic of Perry than any Democrat over the past year -- has attacked the latest plan, saying schools shouldn't be dependent on sin taxes for financing. She also wants to ban topless clubs from even receiving liquor licenses, though that hasn't stopped BYOB establishments from springing up across the state in the past.
Posted by: John at April 22, 2004 9:58 AMThe NY Times is such a predictable, biased rag.
I just love "reductions to the most affluent homeowners."
The governor does want to grant property tax relief, yes, but across the board. And a key component of the plan is a cap to stop the appraisal creep that has acted as a MASSIVE tax increase on property owners in Texas in recent years.
The (wonderfully conservative) Harris County tax assessor has the best numbers on the impact of that appraisal creep in recent years, probably the only set of reliable numbers. The state's governor-wannaba Comptroller has nothing comparable, but that doesn't stop her from saying stupid things several times a day. Here's a link to Bettencourt's powerpoint (large):
http://www.hctax.net/downloads/govproptax.ppt
The argument against sin taxes is legitimate, if only that it gives the government a heavy incentive to keep people sinning.
Posted by: Timothy at April 22, 2004 11:11 AMTimothy:
Which requires that you believe taxes don't affect behavior.
Posted by: oj at April 22, 2004 11:24 AM"Taxes also have the advantage of being easier to enforce than a ban."
Taxes do affect behavior.
Can you say "Black Market?"
The best thing is for the government to stay out of the nanny-state business.
Posted by: Jeff Guinn at April 22, 2004 11:50 AMJeff:
No, your Mom tells you anything you do is a-ookay. It's your Dad who tells you right and wrong. We're talking Daddy State, not Nanny State. The Nanny State gives you money.
Posted by: oj at April 22, 2004 12:17 PM As the man said, "The power to tax is the power to coerce and destroy."
The only bad thing here is that sin taxes delay the starvation of the beast. Voters are more likely to be desensitized to government spending when they perceive that someone else is paying for it. Remember C. Northcote Parkinson's The Law and the Profits? Divide and conquer is Leviathan's stock in trade.
As the man said, "The power to tax is the power to coerce and destroy."
The only bad thing here is that sin taxes delay the starvation of the beast. Voters are more likely to be desensitized to government spending when they perceive that someone else is paying for it. Remember C. Northcote Parkinson's The Law and the Profits? Divide and conquer is Leviathan's stock in trade.
No, no, I'm certain that taxes influence behavior. But that's part of the problem. As taxes are raised on cigarettes, fewer people buy cigarettes. This is a good thing, and so I'm all for sin taxes.
But the result of this is that tax revenues go down, and, tax revenue influencing behavior just as much as paying taxes, the government suddenly has an incentive to keep people puffing away.
So, while sin taxes are good moral policy, you can't make them the backbone of government, because you ought to hope that they eventually stop bringing in any revenue
Posted by: Timothy at April 22, 2004 1:09 PMAnother problem with sin taxes is that they make the state a partner in the sin business. This has become explicit with respect to gambling -- thrown your money away on a state lottery recently -- but the ne plus ultra for coopting the state has to be the tobacco settlement. In one shot, the tobacco companies made the state their cartel enforcer and marketing partner. Brilliant.
Posted by: David Cohen at April 22, 2004 4:24 PMThe states are already complicit--they legalize the stuff so they can tax it indirectly. If you're going to allow sin be honest about it and make it pay.
Posted by: oj at April 22, 2004 4:37 PMThe term "Nanny State" is from, of all places, Europe.
It speaks of a state which takes over everything, both economically, and morally.
To the extent there should be a sin tax, it should only be enough to cover the externalities of the activity.
Anyone who thinks the government should be in the business of leglislating morality is a statist of the first division.
What's more, you forget the principle of the Conservation of Misery. Like mass and momentum, Misery is always conserved. The profit of virtue is evident only in relation to the cost of sin. When people are left to their own devices, the fools among us will provide clear examples of why not to make foolish decisions.
The alternative is relying on the government to make the decisions for us.
Are you sure you aren't a plant from MoveOn.org?
Posted by: Jeff Guinn at April 22, 2004 6:50 PMEvery law legislates morality. I want to tax sin. You want it free. I'm anti-sin. You're pro. We each want our moral vision--in your case amoral vision--codified.
Posted by: oj at April 22, 2004 6:54 PMNo, OJ, I am anti tyranny. I am anti-people who feel they were born to direct other people's lives.
The Jeffersonian marketplace of ideas works far better than the tyranny you have in mind.
If something is truly sinful, engaging in it isn't free, regardless of the tax code.
Posted by: Jeff Guinn at April 22, 2004 10:43 PMThe NYT is factually wrong again. Maryland has not "shifted part of the cost of schooling from income, sales and property taxes to levies on gambling and nude or topless dances in the last few years." Governor Ehrlich sorely wants slots to pay for the unfunded 15% increase in general fund spending imposed by the General Assembly before the last election, but he hasn't gotten them.
Well, I'll cut the Times a little slack. The GA increased the tobacco tax by $80 million to pay for the first year of the six-year phase-in. It's just the additional $1.22 billion that remains unfunded.
Posted by: jsmith at April 22, 2004 10:53 PMJefferson didn't believe in a marketplace of morality. The Founders favored liberty within narrow Judeo-Christian boundaries.
Posted by: oj at April 22, 2004 11:08 PM"...narrow Judeo-Christian boundaries" is a code phrase for self-professed true believers to exercise their totalitarian tendencies on everyone else.
Where, precisely, within those narrow boundaries is smoking, or drinking alcohol deemed sinful?
Posted by: Jeff Guinn at April 23, 2004 7:18 AMOJ:
Your opinion. I was wondering what divine revelation backed that up. After all, there has to something other than mere human subjectivity to deem something a sin.
Unless you are making it up as you go along.
Posted by: Jeff Guinn at April 23, 2004 11:39 PMPretty basic Thomism.
Your life is not your own to squander. It is ordained to God. Human dignity comes with a price. Yours is protected even from you.
Posted by: oj at April 24, 2004 1:01 AMOJ:
That is as may be. Clearly, in this context, what constitutes sin is your own opinion, and not backed up in any way by Scripture.
Which not only seems an awfully subjective way to decide sin, but also nullifies some seriously held religious beliefs (life saving blood transfusions, for one example), while simultaneously bringing the bases for some sainthoods (particularly female saints) into serious question.
I may be a materialist, but I would never go that far.
Posted by: Jeff Guinn at April 24, 2004 12:13 PMI was unaware blood transfusions were self-destructive or that any women saints had destroyed themselves.
Posted by: oj at April 24, 2004 12:33 PMBlood transfusions aren't self destructive, but their absence can be.
Talk to your Jehovah's Witness friends about that. Or Christian Scientists about declining modern medical care.
I read a fascinating article lately (sadly, I neglected to save the link) regarding the history of some 18th and 19th century female saints.
On their road to canonization, they brutalized themselves into very early deaths. All in the name of religion.
Posted by: Jeff Guinn at April 25, 2004 3:55 PM