Financial Glossary: Sin Tax


en			ru			jp

Sin Tax

Sin Tax

A state-sponsored Tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling.

These type of taxes are levied by governments to discourage individuals from committing such activities without making the use of the products illegal. These taxes also provide a source of government revenue.

Sin taxes are typically added to liquor, cigarettes and other non-luxury items. State governments favor sin taxes because they generate an enormous amount of revenue and are usually easily accepted by the general public because they are indirect taxes that only affect those who use the products. When individual states run deficits, the sin Tax is typically one of the first taxes recommended by lawmakers to help fill the budget gap.

Posted by Privatebanking.com

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.