What is a sin tax?

Answer

Sin tax is not a biblical term. In common usage, a sin tax is a rather facetious name for a special tax levied against things considered “sinful” or harmful to society in some way. Taxes on tobacco products, beer, liquor, gambling, and, most recently, legalized pot are considered “sin taxes.”

A sin tax can be an effort on the part of a governmental body to curb certain behaviors that are deemed to be dangerous or detrimental to the individual or society by making the cost of the products or services extraordinarily high. For instance, on average, almost half the cost of a pack of cigarettes is due to taxes. By taxing certain products and activities heavily, it is hoped that usage and participation will be deterred. The “sin tax” is an alternative to outright banning certain activities and products or punishing/fining people for indulging in them.

A more cynical view is that a sin tax is simply a way for the government to boost its revenue. People are going to indulge in these harmful behaviors, especially when they are addicted to a substance, and the government has chosen to profit from it. In this view, government leaders are not really trying to curb behavior because then they would lose tax money. They have come to rely on the taxes generated, so they are knowingly taking advantage of people who may be caught in a web of addiction.

Alcohol and tobacco products are historically the most common things targeted by a “sin tax.” Other products and activities that may have “sin taxes” levied against them are gambling, pornography, and marijuana. Some jurisdictions are also passing laws to levy “sin taxes” on candy, soft drinks, and fast food. Certain vehicles that consume large amounts of gasoline are also becoming targets of extra taxes, perhaps due to a belief that fossil fuel consumption is a moral issue.

Many of the things that are the targets of sin taxes are undoubtedly unhealthy, andA reduction in their use would be beneficial. However, critics argue that, in reality, sin taxes do not decrease consumption but instead impose an unfair burden on the poor. They contend that individuals will continue to use these products (especially cigarettes and alcoholic drinks) regardless of the cost, and that the wealthy can easily afford them while the less affluent cannot.

Sin taxes highlight the challenge of attempting to externally alter and regulate behavior. It is undeniable that some form of external control is required to restrain sinful actions. Nevertheless, a genuinely free society can only function effectively when there is a shared understanding of what constitutes moral behavior and a collective commitment to act morally. In the past, there was a consensus in the United States regarding fundamental standards of right and wrong. Even when individuals transgressed those standards, they could still acknowledge that their actions were morally incorrect. This consensus was rooted in what is known as “the Judeo-Christian ethic,” which denotes an ethical framework based on the teachings of the Old and New Testaments. The Judeo-Christian ethic was partly external but also somewhat internal, as most citizens were brought up in it, and societal norms largely guided people in the right direction. Today, with the erosion of that Judeo-Christian consensus, there is a lack of consensus on even the most fundamental questions of morality, truth, and falsehood.

Perhaps the current situation exposes the inherent weakness in a free society that does not consist of individuals who have experienced spiritual rebirth. Even a revival of the Judeo-Christian consensus from the past would not address the fundamental issue of sin, which is essentially a matter of the heart. While such a society would undoubtedly be a more desirable place to reside, individuals would still grapple with internal sinfulness and remain accountable before God. Certainly, in the Old Testament, Israel had stringent external regulations, yet sin was still widespread. This is why God informed Jeremiah about a New Covenant that He would establish.

“The days are coming,” declares the Lord,

“when I will make a new covenant

with the people of Israel

and with the people of Judah.

It will not be like the covenant

I made with their ancestors

when I took them by the hand

to lead them out of Egypt,

because they broke my covenant,

though I was a husband to them,”

declares the Lord.

“This is the covenant I will make with the people of Israel

after that time,” declares the Lord.

“I will put my law in their minds

and write it on their hearts.

I will be their God,

and they will be my people.

No longer will they teach their neighbor,

or say to one another, ‘Know the Lord,’

because they will all know me,

from the least of them to the greatest,”

declares the Lord.

“For I will forgive their wickedness

and will remember their sins no more.”

Laws and taxes are partially effective external restraints on sin. But God’s plan to restrain sin is to change people internally so that they will want to live in a way that is moral and just. Jesus came “to do away with sin by the sacrifice of himself” «for then must he often have suffered since the foundation of the world: but now once in the end of the world hath he appeared to put away sin by the sacrifice of himself. », (Hebrews 9:26). Under the New Covenant, sin is taken away. People can be forgiven of their sins and have their hearts changed so that they want to please God as they live in the power of the Holy Spirit.