Re: Taxing for your own good... enough already!
"met00" <met00cigar@gmail . com > wrote in message
news:tlvJj.429$4O1.318@trnddc03...
> The NY Times had a fascinating write up on Clinton's proposed health care
> plan. And once again I saw the same old requirement for funding. Let's tax
> tobacco more!
>
> Taxing a shrinking group more and more doesn't make for a smart policy.
>
> Yes, we need a healthcare program that works. But time and time again the
> only suggested method of paying for it has been to tax tobacco users, as
> if the tobacco users are the only people in society that should pay for
> the unhealthy lifestyles of everyone.
>
> Well, the problem is that the more you tax this shrinking group, the more
> the group shrinks. I guess that would be good news, except it's hard to
> fund a realistic program costing billions on the backs of an ever
> shrinking pool. That last federal increase on tobacco (prior to this
> latest round of talks for funding S-Chip) was in 1999 and was phased in
> over a two year period. In just a five-year period from 2000 through 2005,
> tobacco tax collections rose 45 percent, according to the Department of
> Commerce. Not even property taxes have grown that fast, despite a housing
> bubble that pushed property taxes up at a historically rapid pace,
> starting a nationwide flurry of property tax relief measures
>
> So, let's look at some other culprits to tax that haven't had to pick up
> their fair share of the damage that they do to society. Taxes on tobacco
> products increased three times faster than alcohol taxes, the other major
> "sin tax," from 2000 to 2005. The most likely reason for the disparity is
> that a majority of citizens enjoys alcohol while smokers are a minority,
> about 20 percent of the population nationwide.
>
> In the last 55 years the Federal tax on alcohol has been raised only once
> for beer and wine, and only twice for liquor. On top of that the taxes are
> flat rate taxes, not percentage of cost taxes, so over time the real value
> of the tax has dropped considerably as it has been eaten away by
> inflation. In addition, the federal tax on beer wine and hard liquor is
> all different based on the product rather than being based on the actual
> alcohol (beer, wine and hard liquor are all taxed at different rates -
> beer and wine being taxed at a much lower level).
>
> The known costs of alcohol abuse, drunk driving and underage drinking are
> over $185 Billion dollars a year. The income in 2007 from the federal
> alcohol tax was less than $18 Billion dollars. The last time the tax on
> alcohol was raised was in 1990.
>
> Unlike tobacco tax increases which the lowest 20% of wage earners pay the
> highest portion of the taxes in relation to income, the alcohol tax would
> actually reverse that and the top 20% of all earners would actually pay
> the largest portion of taxes.
>
> In addition, one thing not discussed is the increase in diabetes (what
> does this have to do with alcohol... well alcohol becomes sugar, but in
> reality this was a not-so-smooth transitional paragraph to another area
> for taxation - read on). More than 16 million people in the United States
> have diabetes in 2000, about a third more than had the disease in 1990.
> Increases were reported among all adults, but the most dramatic
> increase -- a 70 percent jump -- was seen in people aged 30 to 39. Among
> those 40 to 49, the rate of diabetes increased by 40 percent, and it was
> up 31 percent for those 50 to 59. A study from the Centers for Disease
> Control and Prevention (CDC) shows that the prevalence of diabetes rose 5%
> annually since 1990 and shows no signs of slowing or stopping.
>
> Not only does the Federal government not tax sugar, but it provides
> subsidies for the industry.
>
> The point here is that there are any number of options available to the
> American people that would do what the nanny's want to do, "change bad
> behaviors" and also raise money that don't include ever increasing
> taxation on an ever shrinking group of people (who have the lowest incomes
> and have the least disposable income to afford to carry such an onerous
> tax).
>
> Providing every American with access to healthcare is a very good thing.
> Ensuring that there is a valid funding mechanism for doing so is paramount
> in determining how it can be done. It is time to get past the demonizing
> of the tobacco industry and their consumers as the group that has to carry
> this burden and address the simple fact that this group can not carry this
> burden and provide a viable funding source for such a program. It insults
> the intelligence of the people to claim that they can.
>
> Now, the only question remaining is do we continue nanny taxing and go
> after alcohol and sugar as the next major revenue source, or do we come up
> with another way of funding such a program that is fair and equitable?
Alcohol does not become a sugar. Alcohol is immediately metabolized in the
liver. In fact small doses of alcohol act as super insulin, they provide a
very quick entry for glucose into cells. This is why if you drink and do
not eat you get dizzy from low blood sugar. For some diabetics, a couple of
small drinks, such as red wine, taken with a meal can help keep glucose from
spiking afterwards. Alcohol also compromises the liver's ability to release
stored glycogen which is why diabetics who drink too much alcohol get
dangerously low blood sugar levels especially if they inject insulin. What
alcohol can do is to cause pancreatic inflammation. This makes for reduced
insulin production. Chronic pancreatic inflammation can permanently damage
the pancreas and make for a pre-diabetic condition. And not only does raw
sugar cause insulin spikes which lead to insuklin resistance, but a high
carb diet does this as well because carbs are immediatly converted to
glucose in the small intestin and stomach. Higher glycemic index carbs are
worse, this includes white bread and pasta and anything else made with
flour.
But yes, alcohol needs to be taxed more. Smokers are just a handy target.
Paul