Taxes

‘Sin taxes’ helped states plug budget gaps

‘Lots of statehouses were looking for money.’
In this Friday, July 17, 2015 photo, Newport cigarettes, a Reynolds American brand, are on display at a Smoker Friendly shop in Pittsburgh. (AP Photo/Gene J. Puskar)

Lawmakers in at least nine states this year increased or broadened excise taxes on potentially harmful products such as cigarettes, sportsbooks and cannabis, as they sought to keep up with new technology and raise needed revenue.

It was a busy year for excise tax policy, including so-called sin taxes, said Adam Hoffer, director of excise tax policy at the Tax Foundation, a free-market think tank based in Washington, D.C. Excise taxes are levied in addition to sales taxes.

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