Shaping behavior through tax policy

Editor's note: Here's another notable comment on Measure 50 that's worth further discussion - this one by "anoregonreader".

I'm getting in on the discussion quite late, but I am a bit confused by the moral outrage of those who think it is unfair to tax tobacco use. We use taxes to shape behavior all the time. We encourage home ownership by creating a deduction for mortgage interest. We provide tax credits for those who install certain energy conservation equipment. Did any of us turn those down because renters, or those less enlightened on conservation, are footing the bill? Many of those who find Measure 50 unfair would be first in line to support increased gas taxes to encourage less driving and more fuel-efficient vehicles.

In fact, much of government action is aimed at changing behavior. Predatory lenders? Outlaw the practice or tighten regulations to prevent the worst abuses? Drivers who speed on the roadways? Enact a scheme of fines that ups the pain as the speed over the posted limit goes up?

It may be somewhat unfair to single out smokers, in that their behavior has already lost its badge of social approval. But discouraging their tobacco use, which as torridjoe points out has horrible PUBLIC consequences, is perfectly justifiable. Hell, it would be justifiable if we just threw the resulting income stream down the toilet. We'd help some smokers quit and lower public health costs at the same time (and make them more reliable , and profitable, workers or businesspeople).

The only reason we haven't taxed other socially damaging products, notably alcohol, more heavily, isn't because the product is free from harm, but because of the great power of the combined beer, wine and liquor lobbyists with those representing restaurant.

Why haven't we required deposits on bottled water? Not because of any legitimate policy difference between that and fizzy drinks.

Unfortunately, most of time tax policy is written to shape behavior, it is at the behest of the rich and powerful, and mostly benefits them. What is so bad about discouraging a very self-destructive behavior, improving the health of smokers and their families, and benefiting the less fortunate among us? It may not be the perfect solution, but I sure don't say any other solution proposed that comes close.

  • Adam HD34 (unverified)
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    I really think taxing tobacco is the way to go. As someone who grew up with a parent who smoked I repeatedly was annoyed at being exposed to the nasty smell. Taxes on Tobacco don't go far enough however, we need to get rid of it all together. While I think additional taxes on tobacco is great step, and a necessary step. We really ought to make it child abuse to expose a child to smoke. I have no mercy for a drug that kills people when it is used exactly as intended.

    If anything we should at least raise our taxes to equalize with Washington's tobacco tax to discourage smokers over there too.

    The NO-on-50 TV ads are outright deceptive lies put on by the tobacco trolls as some put it. I don't have any children but I want more of our state's children to be cared for. Just because it won't help you directly doesn't mean it isn't in everyone's interest. I know many families who would benefit from having health care access for their children. The constitutional argument is irrelevant, if the republicans didn't hate children so much they would have let us pass it as a statute last session. They were probably doing what the tobacco industry told them to do by forcing it to be a constitutional amendment referral. You know folks, we could always change it later!! Especially after we toss out these worthless republicans and get our majority.

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    I'm getting in on the discussion quite late, but I am a bit confused by the moral outrage of those who think it is unfair to tax tobacco use. We use taxes to shape behavior all the time.

    In my case, at least, the outrage isn't because I think it's unfair to tax tobacco use or because I don't think behavior can be shaped by taxes. It's that the amount of the rise in taxes is calculated to not reduce smoking by a significant amount. Overall consumption is only expected to go down a few percent. If the tax had been raised to a point where it actually covered the costs to the public health system of smoking, the percentage of smokers would have gone down more drastically, but it's going up less than a dollar a pack because that helps maintain a stable revenue source. If they raised it enough to really impact the number of smokers, the revenue stream would dry up. Bleed it slowly is the plan.

    That's what's outrageous.

  • John Eyler (unverified)
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    I'm already on record admitting that I am a smoker and that I don't have a problem with a sin tax as M50 is. It's bad policy because it doesn't pay for itself. In a year or two it will take ever increasing funds from the general fund to pay for its excesses. That's the actual argument. We should legalize majrijuana and tax its use, and hookers should pay a percentage for every trick. I agree! But lets not adopt bad policy on these grounds.

  • Robert Harris (unverified)
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    Why do opponents of M50 refuse to recognize that the non partisan economists say that the tax will pay for the health care program?

    And so what if smoking does go down so much that the state has to either find some more funding or cut back on the program. Is that bad? Don't these same opponents want a more broadbased responsibility for funding the program anyway? So wouldn't decreased smoking actually solve one of the problems they cite?

    Don't people realize that if smoking goes down other state expenditures on health care will go down (freeing up more public dollars) and all of our insurance rates will go down (freeing up more of my dollars)

    There is simply no downside to M50, unless you're a tobacco company.

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    It's bad policy because it doesn't pay for itself. In a year or two it will take ever increasing funds from the general fund to pay for its excesses. That's the actual argument.

    Got a source on that? One that isn't paid for by the tobacco industry?

  • Tom Civiletti (unverified)
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    Confused by the moral outrage?

    Well, I will likely offend some people with this, but much of the opposition to M50 I've read here is bitching, plain and simple. Bitching is finding something, anything to complain about regardless of reality. Bitch that the tax is too high. Bitch that the tax is too low. Bitch that tobacco tax is being used to buy health insurance. Bitch that all the tobacco tax is not being used to buy health insurance. Bitch that smokers will not be able to afford their habits. Bitch that the tax will make no difference in smokers' habits. Bitch that the health programs will be too expensive for the revenue stream. Bitch that the health programs are not covering everyone for every conceivable need. Bitching is easy. It's about attitude, not reason. It's especially easy when a wealthy industry pays crafty PR people to formulate every possible bitch and spread them around like snot producing viruses. It takes only one successful bitch infection to make a "NO" voter out of someone with a predisposition to dislike taxes, or social programs, or politicians, or government in general. And once infected, victims are likely to spread the bitch to other susceptible voters.

    Politics can be a real bitch sometimes.

  • Jeff (unverified)
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    Your statement "We use taxes to shape behavior all the time" is a drastic oversimplification of the objection. Yes, we shape behavior all the time, but that doesn't mean that either a) all your examples are the same kind of shaping behavior or b) that this particular tax is the thing we want right now. Measure 50 isn't so much imperfect as it is fundamentally flawed. It has one huge benefit: insuring kids (note: not caring for them, insuring them. good, but not the best). It has many downsides: increasing the tax on cigarettes (we already disincentivize this enough, some of us feel), getting around the 3/5ths requirement by sending a "feel-good" measure to the people (how come we couldn't have spent money on kids health insurance first rather than leaving it to last so we could send it to the people? Oh, right, it's hard to send things that don't carry stridency to the people) and lastly, the very stridency of its supporters.

    Many of us who oppose it are opposing it because of subtle reasons. I'm very close to the fence, but I think it's overall a little bit worse for us than it is better. But the arguments in favor do a good job demonizing me.

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    "Jeff" -- please use a secondary identifier, so as to prevent confusion with all the other Jeffs around here.

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