Sin Taxes: The Price of Pleasure

SN TAXES The Price of Pleasure Because cigarette and alcohol taxes are built into the prices of these products, many people don't even know they're paying them. But what if... there were no taxes on those products? Smokes $1 $1 $1 $1 $1 1794- 1864 BILLION BILLION BILLION BILLION BILLION Smokes AMOUNT OF Federal tobacco taxes $1 $1 BILLION BILLION $1 BILLION $1 $1 FEDERAL EXCISE were first enacted in BILLION BILLION 1794, but came and went over the years until 1864. TAX REVENUE IN $1 BILLION BILLION $1 $1 $1 $1 BILLION BILLION BILLION FY 2011 1864 FACT A box of 20 cigarettes was taxed at 0.8 cents. The average retail price of a package of 20 cigarettes (full-priced brands) as of November 1, 2011, was $6.01, including federal, state, and municipal excise taxes. FACT Federal, state, and municipal excise taxes on cigarettes for the FY ending June 30, 2011, amounted to nearly $33.3 billion, or approximately $106.5 per capita. 2011 The government started taxing cigarettes and alcohol to pay back Revolutionary War debt. Secretary of the treasury Alexander Hamilton introduced The rate was $1.01 per pack of cigarettes. IF THERE WERE SUBTRACT SIII0 NO TAXES from the average yearly cigarette bill the first ever federal tax on tobacco products. STATES ALSO TAX CIGARETTES 00000 1DOLLAR 1DOLLAA 1OLLAR 10LLAR New York City has the highest rate in the nation 00000 $150 + $4.35 = $5,85 citywide tax local rate a pack LOWEST STATE TAX HIGHEST STATE TAX Missouri, 17 cents a pack New York, $4.35 a pack BY 2012 EXPERTS SAY THE $1 BILLION BILLION BILLION BILLION BILLION $1 $1 $1 $1 the average number of packs bought by individuals in a year was NUMBER IS Smokes CLIMBING! 48 In 2010 alone, states with high tobacco taxes lost about $5 billion in revenue because of cigarette smuggling, according to the Bureau of Alcohol Tobacco Firearms and Explosives. Spirits in the Night 1791 The act of 1791 (popularly called the "Whiskey Tax") enacts a tax on both publicly and privately distilled whiskey in the United States. 1793 During the whiskey rebellion of Pennsylvania, government troops arrest of distillery leaders who refused to pay taxes on their products. handful 1802 The Whiskey tax is repealed. A new alcohol tax is temporarily imposed in the United States to help pay for the 1814- 1817 War of 1812. 1862 Abraham Lincoln imposes a new tax on liquor to help pay the bills from the Civil War. 1920 Prohibition. The passage of the 18th Amendment and the Volstead Act effectively outlaw the production, sale, and transportation of alcoholic beverages in the United States. 1933 Prohibition is repealed. With the exception of labeling, advertising and containers, the federal government TODAY does not enforce laws about selling or serving spirits, wine or beer to consumers. Usually, state governments regulate persons selling or serving spirits, wine or beer to consumers. Spirits, wine, and beer $7.6 BILLION are each taxed at different rates by both the federal and state governments. Alcohol is taxed by volume with different rates applying to beer, wine and liquor. Alcohol is taxed by volume with different rates apply- ing to beer, wine and liquor (with additional distinc- tions among wines by alcohol content). There is some crude proportionality to the amount of alcohol in the drink, but it is not exact. annual revenue to federal government paid out by alcohol beverage industry. HIGHEST AND LOWEST STATE EXCISE TAXES ON LIQUOR, PER GALLON Or, if you buy liquor, get thee to New Hampshire Vermont Wyoming $0.49 Missouri New Hampshire $0.00 $0.00 $2.00 Washington $35.22 Oregon $22.73- Virginia $20.56 = Highest in tax per gallon = Lowest in tax per gallon Alaska $12.80 Alabama Colorado $2.28 $18.24 THE PRICE OF LIQUOR- NEW HAMPSHIRE VS. WASHINGTON = New Hampshire = Washington $11.99 $17.28 $18.49 $25.11 $25.28 $36.72 $10 $20 $30 $40 Gambting 10 .25 % Legal gambling operations operators must pay of licensing fee, and both lotteries and other gambling operations must pay a 0.25% of wagers excise tax on gambling. THE IRS Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. FACT Internet gambling sites originating in the U.S. are illegal, Wr NoW... for Pot FACT In Colorado, where sales of recreational marijuana is legal, voters are being asked to decide on Proposition AA in November, a statewide ballot measure that would levy a 15% excise tax and a 10% sales tax on sales of marijuana and marijuana-infused products. Right now, there is NO tax on recreational pot in Colorado. Stay tuned for the next election, though. Washington state, the only other place in the U.S. that has legalized recreational pot, will tax retail pot at 75%. That rate was included in the ballot measure voters there approved last year. IN SEATTLE pot costs about $50 $50 $50 $50 $50 $250.00 per ounce SOURCES: BROUGHT TO YOU BY ACCOUNTINGSCHOOLGUIDE.COM http://www.investopedia.com/articles/tax/10/history-taxes.asp http://www.taxadmin.org/fta/tobacco/papers/Tax_Burden_2011.pdf http://www.pewstates.org/projects/stateline/headlines/cigarette-smuggling-cuts-states-per-pack-tax-revenues-85899480180 http://www.dkosopedia.com/wiki/Federal_Excise_Taxes http://chowhound.chow.com/topics/884115 http://www.ttb.gov/faqs/genalcohol.shtml#g2 http://dailycaller.com/2013/09/09/opponents-of-colorados-marijuana-tax-plan-hand-out-free-pot/#ixzz2gKZCulDR http://www.irs.gov/taxtopics/tc419.html 1/2 GALLON RUM [CAPT. MORGANI VODKA (SMIRNOFFI CHARDONNAY