An article by Elon Law professor Andy Haile has been published in the current issue of the Temple Law Review. Haile's article, "Sin Taxes: When The State Becomes The Sinner," examines increasing state dependence on revenues from taxes on tobacco.
In the article, Haile explains how a $200 billion Master Settlement Agreement between states and major tobacco manufacturers has aligned states’ and tobacco companies’ financial interests. The article considers two alternatives that may break, or at least mitigate, the alignment of interest between states and sellers of such products: earmarking and securitization.
Haile concludes his article by explaining that unless states take action to address the conflict of interest that arises as a result of their dependence on sin tax revenues, the states themselves may become the “sinners” by sacrificing their citizens’ health for much needed revenue.
“The risk that the states will become more dependent on new or increased sin taxes is particularly acute given the unprecedented economic circumstances presently affecting many states,” writes Haile. “Before state legislatures turn to sin taxes as an easy source of revenue, however, they should reconsider the traditional arguments both for and against the taxes.”
Temple Law Review is a student-edited scholarly journal that publishes four issues per year.
Click here to read Haile’s article in full.
Haile teaches business and tax law classes at Elon Law. His primary areas of research include tax policy and state and local tax issues. Before joining Elon Law, Haile represented clients in mergers and acquisitions as well as matters involving complex tax planning and tax litigation.
Click here for additional information about Elon Law professor Andy Haile.