E-cigarette taxation: Lessons from “sin taxes”

The Economist takes on “sin taxes” in a recent article, “‘Sin’ taxes—eg, on tobacco—are less efficient than they look.” The article has several lessons for policy makers eyeing taxes on e-cigarettes and other vapor products. Historically, taxes had the key purpose of raising revenues. The “best” taxes would be on goods with few substitutes (i.e., inelastic demand) and on goods deemed to be luxuries.

What I’m Watching Now

“The Future of Individual Tax Rates: Effects on Economic Growth and Distribution,” United States Senate Committee on Finance Hearing (HT: Taxprof Blog).  Scheduled witnesses include: Carol Markman (CPA, Feldman, Meinberg &…