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Sin Taxes: Taxing Our Vices

sin Iахes TAXING OUR VICES Federal and local governments are taxing our vices..big time. These taxes, known as "sin taxes," generate revenue and affect purchases. Louuch does my A sin tax is added to products or services considered to be In 2011 STATES COLLECTED unhealthy: $50 BILLION IN "SIN TAXES" COSI? States The states with the highest revenues from the sin tax are CASH ing an 2. RHODE ISLAND 5.4% generated $505,305,000 LYOUR VICES most profitable; LOTTERY 1. NEVADA 3. DELAWARE 5.0% Total Jax Revenue Percentage generated generated 5.8 $1,013,588,000 $472,054,000 most profitable: CASINOS most profitable: LOTTERY GETTING smoked by THE MAN - Cigarettes are the most heavily taxed consumer good in the world OF THE PRICE OF CIGARETTES 58% is a result of excise taxes mln product cost of cigarettes + Federal tax (of $1.01 per pack) + State sales tax (average of $1.53 per pack) + City / County fees & taxes (varies by city and county) COST OF FINAL PRICE OF A PACK OF CIGARETTES CIGARETTES Cities WITH THE HIGHEST ADDITIONAL FEES in 2010 1. NEW YORK CITY 2. CHICAGO 3. EVANSTON +$1.50 +64.35 +$0.68 +3.00 + $1.98 + 60.50 +63.00 + 81.98 NY City Tax NY State Tax Chicago City Tax Cook County Tax III State Tax Chicago City Tax 'Cook County Tax III State Tax $45.85 $5.66 $5.48 пmlu COST OF COST OF crCARETTES CIGARETTES CICARETTES worth of additional taxes worth of additional taxes worth of additional taxes states WITH HIGHEST ADDITIONAL FEES NEW YORK 4.35 2. MASSACHUSETTS 3.51 3. RHODE ISLAND 3.50 $435 New York's cigarette tax increase from 2000 - 2010 $2.75 $1.1.1 $1.50 2000 2002 2008 2010 drunk TAXES WANT TO MAKE ME but I can't afford it Excise tax rates for wine are applied per gallon As of January 2013, As of January 2013, KENTUCKY LOUISIANA HIGH LOW holds the highest holds the lowest CC BY-SA 3.0 @ TUBS rate of excise tax rate of excise tax ce BY-SA 3.0 e TUBS $0.50 11 (3.15 20.11)-0.11 $1.59 Additional tees for sparkling wine per gallon wholesale tax per gallon per gallon per gallon GOVERNMENT SO, YOU'RE actually SAYING THE wins the lottery.:. EVERY.. SINGLE... TIME? Cash and noncash gambling winnings are fully taxable regardless of the amount REWARDS. O EL THE PAYER MUST GET YOUR SOCIAL SECURITY NUMBER o CIGARS AND INFORM THE IRS OF THE EXTRA INCOME NOBIAmis NOU WIN 1200 YOU OBTAIN FROM THE WINNINGS IF: YOU WIN OVER $600 AT A HORSE RACE The payer generally will reduce payout by withholding federal taxes at a YOU WIN more thar ÎN KENO WINNINGS DOLLARS $1,500 AT A SLOT MACHINE OR (ant that amount is 300 times your bet) BINGO GAME 25% RATE MAYBE I COULD EASE THE PAIN BY in addition to requiring the winner to fill out a W-2G form growing m OWN WEE Refusal to give a SSN could result in a 28% tax withheld from the player's winnings at the time of payout recreational In 2012 COLORADO LEGALIZED THE PRODUCTION, SALE,&USE OF MARIJUANA CC BY-SA 3.0 @ TUBS IN NOVEMBER 2013, COLORADO WILL VOTE ON A PROPOSED TAX STRUCTURE Here's how it would work based on a study done by Colorado State University extension of the 06s $600 40 730 15% 10% 2.9 A DISTRIBUTOR BUYS A POUND OF MARIJUANA at wholesale price of total cost to DISTRIBUTOR excise tax per excise tax on the WHOLESALE VALUE of marijuana special tax on the RETAIL SALE of marijuana GENERAL SALES TAX to marijuana and marijuana products t. The cost of distribution $2,509 THE DISTRIBUTOR THE RETAILER MARKS THE POUND UP THE GOVERNMENT ADDS per ADDS 25%Y13 ADDS 175% SPECIAL AND STATE TAXES OF i 10% & 2.9% & CHARGES A RETAILER SETTING THE PRICE AT $2,833 FEDERAL IN DENVER, COLORADO, IF THE TAX STRUCTURE ON MARIJUANA IS APPROVED per lb THE PERCENTAGE OF RETAIL PRICE WHICH WILL BE DUE TO TAXES 11.4 12.9% 21.2% 34% $7.52 $8.98) $23.50 ($7.52 RETAIL PRISE RETAIL PRICE RETAIL PRICE RETAIL PRICE WINE BEER MÁRIJUANA CIGARETTES &1OCAL COVERNMENTS ARE ARLE FO BR IT OFF OF ITS DOES ALL THIS TAXATION MAKE YOU WANT TO Citizens VICES. öne 750 ml bottle six-pack 1/8 of an ounce опе расk QUIT OR REWRITE THE TAX CODE? Sources: http://www.taxadmin.org/fta/rate/cig_inc02.html http://www.tobaccofreekids.org/research/factsheets/pdf/0202.pdf http://www.tobaccofreekids.org/research/factsheets/pdf/0097.pdf Presented by: Online-Accounting-Degrees.net http://www.taxpolicycenter.org/taxfacts/Content/PDF/alcohol_rates.pdf http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Excise-Tax http://www.bankrate.com/finance/money-guides/reporting-gambling-winnings.aspx http://www.thebeveragejournal.com/assets/l-Tax-Foundation-Wine-Excise-Tax-Map.png http://apps.irs.gov/app/understanding Taxes/whys/thm05/les01/media/is1_thm05_les01.pdf http://qz.com/83411/how-much-tax-coloradans-will-actually-have-to-pay-on-their-marijuana http://www.pmi.com/eng/tobacco_regulation/tobacco_taxation/pages/tobacco_taxation.aspx https://webcom.colostate.edu/coloradofutures/files/2013/04/CFC-Amendment-64-Sfudy-final2.pdf http://www.freep.com/article/20130817/NEWS06/308170065/Michigan-among-top-states-profiting-the-most-from-sin http://www.hrblock.com/free-tax-tips-calculators/tax-help-articles/Income/Gambling-Winnings.html?action=ga&aid=27116&out=vm DEVELOPED BY N NOWSOURCING SUPER-XX-X

Sin Taxes: Taxing Our Vices

shared by NowSourcing on Nov 15
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How much does your sin cost? This infographic provides a deeper look into how some of our vices, like drinking and smoking, are taxed.

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Economy
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