
Caught cheating: When sin taxes forge unforeseen fallout
From sugar to cigarettes, raising taxes on certain products is intended to discourage unhealthy or undesirable behaviors. These taxes — called sin taxes — may be effective in reducing the use of those products, but is that the only consequence?
From sugar to cigarettes, raising taxes on certain products is intended to discourage unhealthy or undesirable behaviors. These taxes — called sin taxes — may be effective in reducing the use of those products, but is that the only consequence?
In this story published Dec. 14, 2021, on Bloomberg Tax:
We then examine how their likelihood of committing fraud changes around a large increase in federal sales taxes on cigarettes. We find that in the month immediately after the tax hike, smokers ramp up their cheating by about half — this represents an increase of about 1.1 fraudulent trips per month.
– David Kenchington, assistant professor of accountancy
– Roger White, associate professor of accountancy
Latest news
- Arizona and Mexico officials to meet for trade summit, address tariff concerns
ASU supply chain management expert calls Arizona-Mexico Summit a smart, strategic move for…
- Swiping right on leadership
Whitney Wolfe Herd is reshaping tech to work better for women — beginning with the mission-…
- Tariff engineering: The legal way companies avoid paying higher import taxes
Strategies like tariff engineering benefit companies but hurt consumers, says an ASU economist…