Our
View: Tax vices? Then tax them all
California's
superfluous heap of paternalistic laws inspired
critics some years ago to deride the Golden
State as the "People's Republic of
California," a reference to the oppressive
political system of China, which is formally
known as the People's Republic of China.
The label is naturally directed at the state's
government, which comprises the legislative
and executive bodies responsible for implementing
laws that purport to protect people from
themselves.
In
light of the results of a Los Angeles Times
poll released Sunday, however, it may be
time to extend that derogatory description
to the vast majority of the populace. The
poll sought to gauge the sentiments of Californians
on the possible need to raise taxes in order
to alleviate a remaining $14 billion budget
deficit.
The
results showed overwhelming bipartisan voter
support for heightened taxes on cigarettes
and alcohol. Together, Democrats, Republicans
and Independents backed higher taxes on
tobacco and liquor by 78 percent and 79
percent, respectively. But when it came
to a "small increase" in the sales
tax, only 47 percent of respondents said
they supported such a move.
To look at the public's opinion, an uninformed
observer might guess that smokers and drinkers
had somehow played a part in creating California's
budget deficit, and that they were now about
to receive their comeuppance. Of course,
reality is reflected in the contrary; taxes
on alcohol and tobacco have helped fill
the coffers of the state's General Fund
for years.
In 2001, tobacco taxes generated some $2.2
billion for the state, while alcohol excises
gave it another $280 million. This amounts
to about 2.5 percent of the state's nearly
$100 billion annual budget.
Taxes
on the products are already at or above
the national average. While the cigarette
tax of 87 cents per pack is around the national
average in terms of actual price,, this
charge amounts to 49 percent of the wholesale
price, giving the state the fourth highest
tax rate in the country. The alcohol tax
varies among wine, alcohol and spirits.
The tax on beer (20 cents per gallon) is
slightly below the country's average; the
liquor tax ($3.30 per gallon) is slightly
above it and the wine tax (20 cents per
gallon), owing to the state's prominent
wine industry, is near the bottom.
But
whether the tobacco tax is exorbitant or
the wine tax is low is beside the point.
California's budget deficit is a calamity
that calls for everyone to sacrifice, whether
they are students of higher education desiring
affordable education, government employees
seeking a raise or average citizens who
would prefer to drive on smooth roads.
In
the end, there is no consistent or fair
rationale that supports an additional hike
of tobacco and alcohol taxes alone. There
are plenty of other dangerous and unhealthy
activities that go without special excises.
Motorcycles are dangerous, so why not tax
them? How about a tax on people who don't
exercise? The unhealthy lifestyle they lead
certainly contributes to rising costs of
medical care, so why not charge them if
they relax on the couch instead of doing
pushups? Will all the people who want to
tax smoking and drinking agree to a levy
on red meat, cheese, whole milk, eggs and
butter? Perhaps everyone with a wood-burning
fireplace that contributes to air pollution
should be forced to pay up along with the
villainous smokers and drinkers.
Maybe
these measures wouldn't be such a bad idea.
They would obviously create more revenue
for the state and would create new jobs
in the nascent Ministry for the Prevention
of Vice and the Promotion of Virtue. Heck,
on second thought, we're in! Raise the cost
of everything remotely unhealthy! Use the
money to fund wholesome activities that
everyone loves! Long live the People's Republic!
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