Supply and Demand

The High Cost of Virtue

First of all, a tax is an f be charged by the governance on goods and helpings. In this case, the British people are cutting back on vices to beget the treasury grow stronger. A vice is a practice, conduct or habit considered immoral, degrading or unfit by the society. More than half the vice bill goes directly into government activity coffers. For example in the fiscal year 2010-11, nearly 10% of all taxes came from alcohol, tobacco, and gambling and vehicle scratch duty tax. An excise tax is one that is set on a limited good or service. Sin taxes are excessively dogged enduring and are usually rather lavishly. Sin taxes are position on goods that are harmful to an individual and to society. The high tax placed on the cigarettes led to a flow in the amount of people smoking, along with public wellness campaigns and smoking bans. This was an appropriate step taken as it decrease the number of smokers but also reduced the money that the government was getting. The government could respond by increa pitg the value of the sin taxes. However, this action would result in black markets opening so that the consumers could continue getting the same good or service for a lower price. It is particularly common with cigarettes since they are weak to import by individual smokers.



It is also the same in the case of gambling. The operators are moving off shore to engender more places where the gambling isnt taxed as it is in Britain. Also, the gasoline taxes are leaking quickly. Here too, the gondola car and van mileage has been move steadily for the last few years. Because of the increase in natural gas prices, people are now buying different car brands or are buying cars with better engines. There is also the fact that some people have now started employ public transport and other means of transport kinda of cars. The oil prices have also been pushed up and there is not any amount of tax that can be placed to compensate for it without making it politically toxic. There is also the case...If you desire to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper