Tax Increment on Tobacco and Alcohol Products - Research Paper Example

Tax Increment on Tobacco and Alcohol Products Introduction Studies indicate that the move to increase taxes on tobacco and alcohol products is beneficial to the society. Secondly, the increment shall serve towards reduction of the population that engages in the drug usage. The professor’s research indicates that the habit and indulgence in the use of tobacco and alcohol are a threat to economic and social progress in various dimensions. Students indicate that the society should render adequate support to the tax increments citing that the resolution shall lead to a reduction in poverty rates that often occur from the addiction and mismanagement of funds in order to cater for the ill budget (Berry, 2005). Consequently, there are views that these two drugs are legal in the society, yet there challenges to human health are extremely uncontainable. The following discussion sets the basis of the prescribed solution in accordance with the professor’s view, an evaluation of the advantages of the solution, and an argument of the demerits likely to emanate from the tax increments. Part 1: Revision on the professor and classmates’ solution A critical review of the professor and classmates’ response indicates that the group acquired success to the extent they were able to determine the reasons as to why the society continues to suffer the menace of drug abuse and addiction (Jones, 2011). They indicated alcohol and tobacco as the most abused substances despite the administration setting constitutional constraints to ensure proper or reduced usage rates on them (Brisbin, 2008). The group indicated that most of the people indulge in the consumption of the legalities but health hazardous substances while seeking to relieve themselves from traumas and other types of psychological stresses. Amicably, the response sets a proper basis for the society to decipher vital knowledge on the untamed use of alcohol and tobacco products. In turn, the essay articulates the irresponsible behaviors that obviously pose threats to the society at large. For instance, consumption of alcohol has contributed to the spread of diseases since the consumers, make decisions based on the idealization. While they think that they are right, alcohol consumption impairs ones judgments and these drunks often find themselves in more troubles after realizing their deeds (Berry, 2005). The group indicates that in the absence of increased taxes on the commodities, the users are vulnerable to unprotected sex thus the consequences remain at large while they extend the infections to their spouses too. Therefore, the response seems to be successful as it denotes on the risks that might befall the larger population from alcohol and tobacco usage (El-Saharty & World Bank, 2013). The professor indicates that the larger population risks to stale in economic and social welfare progression since the number of drunks and smokers is on the rise thus; the amount of money spent in the consumption is enviably increasing yet the society is suffering. In accordance with the groups’ research, taxation on the products for the benefit of funding the medical sector is the only method to curb the continued indulgence in the drugs’ consumption. Further, the move is serviceable to reconstruction of ethical standards and the recuperation of moral values in the society (Brisbin, 2008). Observations are that the solution is advantageous in ensuring that the financial budget shelved for the consumption of the health hazardous products is used in more productive utilities for the benefit of the entire society. In support of the argument, it is knowledgeable that the indulgence and continued use of the products renders parents incapable of financing their children’s education, and providing them with desirable living standards (Jones, 2011). This is a detrimental cause as it restrains future progression for the children exposed to such living conditions. The emphasis that taxation on alcohol and tobacco is sufficient is certain since the products pose health risks to the unborn children and also lead to increased miscarriages and premature deaths. Further, the drug usage conquers the decisions of the addicts who venerate them as essential products and a necessity of life. This habit is consequentially a cause to increased poverty rates in societies, whether in the developed or the underdeveloped economies. As the global community pursues enhanced living standards for all human races, alcohol and tobacco seem to pose setbacks to the desired road of success (Berry, 2005). The professor and fellow classmates indicate tobacco and alcohol consumption as a threat to competent labor force in every global economy. The argument is a success in articulating the importance of tax increment since labor is vital for production and innovation. Further, it is through labor that people gain the capital earned as wages or salaries to invest in their sole ventures, thus creating abundant economic structures and enhanced social living conditions from the circulation of revenue (Jones, 2011). Naturally, the concerns and differing aspects as to whether the society should embrace the stipulated increments in tax for alcohol and tobacco products or not may not seize anytime soon if the society fails to learn of the adverse consequences posed by the use. The society should vote for the described regulatory solution since they will engage the particular consumers in handling their imminent health costs through the taxes (El-Saharty & World Bank, 2013). Secondly, a review of the implemented solutions serves knowledgeable as it preserves the society’s mandate to understand and decide whether to vote in the solution into a binding regulation in the constitution or to halt its success by voting it out. The fiscal benefits set by the professor and students’ solution seem to overcome the social consequences that the society might experience from the increments. Part 2: Revision on the advantages born by the tax increment solution The second paper outlines several advantages associated with the embracing of the outlined tax regulations upon tobacco and alcohol products (Berry, 2005). Since the problem of excessive drinking and the abuse of tobacco products are common and a vice in the society, it is essential to make appropriate resolutions to curb the ill issues that will possibly emanate from the use of such products (LaVilla & Wynn, 2010). Ideally, the consumption of tobacco and alcohol products deters progress in the society in various dimensions. Through the evaluation of the advantages drawn by the execution of the tax increments, there is clear evidence that the products are a menace to the society despite the economic returns accrued to the vendors, manufacturers, and chain distributors in the society (Brisbin, 2008). Considerably, a resolution to abolish the VAT charges often expressed by the government over medical care would be an important course of action towards success since the society would only cater for its medical costs rather than paying extra amounts to earn governments extra amounts. Instead of taxing medical services, it is indicated that the increment of taxes on alcohol and tobacco products is essential in ensuring that the governments and other administrative bodies will earn revenue funds from the users who are vulnerable to many preventive diseases (Jones, 2011). As the American society embraces the stipulated tax increments, voting the entities into constitutionally binding laws, the society will experience abrupt changes all for the benefit of the bigger society. For instance, a formerly researched and well documented essay indicated that most of the preventable deaths emanate from the consumption of the two drugs and the society, including medical practitioners would benefit economically from the taxes. This is because the move will exemplify the application of VAT among the services and draw the addicts into a platform of contributing to their medical costs (Berry, 2005). Presumably, the essay successfully denotes the application of taxes upon the products as beneficial in enhancing ethical and moral values. This is advantageous since whenever the consumers of the hazardous products are forced to contribute to their medical costs in consumption of every unit, then they will face financial challenges and will gradually withdraw from the practice (LaVilla & Wynn, 2010). Essentially, the withdrawal will lead to a reduction in the cost of funding for medical care. Despite the stashed advantages, the assignment fails to describe the detrimental effects that emanate from the use of tax increments on the products. It is obvious that tobacco and alcohol usage leads to eruption of many diseases that would naturally be avoided if the administrative bodies would embark on the processes of curbing the production (Viscusi, 2002). The essay declares several economic advantages such as GDP growth rate as changes that will emanate from the newly implemented regulations (El-Saharty & World Bank, 2013). However, the society might as well suffer reduced job opportunities since the predictions are that the situation will lead to reduced production and essentially reduced labor force. The need of tax increments is, however inevitable if the society is to curb the menace of preventable deaths often common with the continued consumption of the drugs. The essay declares its stance that the reduction in the production and consumption of the entities will reduce the mortality rate from its annual 457,000. Enviably, this will translate to increased lifespan and economic productivity as each individual will struggle to attain recommendable living standards (Jones, 2011). The second assignment articulates relevant knowledge to the society that the community shall be achieving ethical and moral concerns since the act shall serve as a basis for reducing unnecessary deaths. The environment shall also yield the prospective advantages given that the tax increment shall act as a solution to the reduction of accidents that emanate from the abuse of the highlighted substances (Berry, 2005). Lastly, the review indicates that the advantages articulated to the solution are overwhelming thus the American society should embrace the motion and vote towards the implementation of the regulation. Part 3: Disadvantages of tax increments on tobacco and alcohol products Economists perceive that the regulation may not yield the prescribed advantages since the demand and supply factors will change in accordance with changes in the unit prices. Considerably, the increment in taxes shall force the drug addicts to find new methods of entertainment. This is an implication that the overall consumption of the products shall reduce accordingly (Crowe Horwath International & CCH Australia Limited, 2009). Whenever such a situation occurs in the economy, the cost of production becomes high since the producers are challenged with the maintenance of demand in the market while the consumers’ practices are changing (LaVilla & Wynn, 2010). In turn, such practices deter the organizations from achieving their set targets and with dwindling profits, they are forced to retrench a considerable number of employees since the returns do not allow sustenance. This drawback is obviously ill compared to the total number of victims who at some point in their lives seek for medical aid with the help of government funding. Arguably, the number of the retrenched workers leads to a reduction of the economy’s GDP with reduced per capita incomes. Research indicates that excise duties and other forms of taxes enable governments to yield half of the required funding for the national budget (El-Saharty & World Bank, 2013). An indication that the taxes expressed in tobacco and alcohol shall be used in catering for medical costs for the users is an indication that governments may lose considerate amounts of revenues. Therefore, the society should be careful in evaluating the merits and demerits of the tax increment prior to the voting process. A reduction in the workforce required in the production of tobacco and alcohol products is a clear indication that the society shall witness a growing number of unemployed individuals (Jones, 2011). In emphasis, it is of vital knowledge of the society to applaud the production in the absence of taxes for medical welfare since at producers will obviously hit the optimal point whereby an extra unit of production shall indicate a loss in the overall profits. Consequently, a reduction in the production of the utilities and the increment of the unemployment rates shall force economies towards reduced GDP, thus they will lack global competence in the foreign market exchange (Berry, 2005). Further, fiscal analyses indicate that the variance shall force the unemployed into adverse living conditions. This is a detrimental factor and a setback to the economy. The adversity of the living conditions further affects the dependants of the unemployed. Upon this review, it is arguable that the prescribed action. ion of initiating a tax increment in the production of the two utilities shall at some point pose general threats to economic propulsion and growth in social welfare. For example, tobacco and alcohol processing plants in the US have a massive population of over 600,000 employees; this group earns its living from the plants and extends its help to the immediate families and to the government through tax remittances. In the presence of the regulation, a third of the total number of employees is likely to face the threat of retrenchment and the economic implications suffered by the group will extend to the immediate members of the society who depend on them. An assumption that an increment in taxes is a solution to the problem of increased medical costs in catering for alcohol and tobacco patients remains ill since the marginal rate of consumption will match the demand of the products towards a reduced level. Secondly, the two products are often subsidized with illegal products, hence the tax increment will force consumers to increased indulgence to the unregulated use of illegal drugs thus posing more threats to the society and the economy. The prevalence of smuggling is likely to increase in the presence of increased taxes and the society will suffer more cases of unethical issues compared to those present with the use of alcohol and tobacco (LaVilla & Wynn, 2010). For instance, smuggling has often been a social menace as it leads to unnecessary deaths from the point of transactions to the point of consumption whereby victims often die of over dosage. The society should engage on a procedural approach to establish a platform for evaluating the abundance of the regulation compared to the existing practices. It seems that the advantages likely to be accrued by the resolution are overwhelming, but it is also knowledgeable that the consequences of the regulations may severe the society a blow (Morgan, 2013). Statistical reviews indicate that increment in taxes for alcohol and tobacco products is exemplary if the revenue is to be used for the benefit of the broader economy. However, the policy may be used in amassing revenue for use in the provision of medical care for the users. Therefore, it is desirable for the state to implement the policy despite the outlined drawbacks. Conclusion The detailed revision sets a basis for the society to evaluate the actual purpose the policy may serve. The essay indicates that most of the preventable deaths emanate from the consumption of the two drugs. The society with inclusion of medical practitioners will benefit economically from the taxes since the move will exemplify the application of VAT among the services and draw the addicts into a platform of contributing to their medical costs (Brisbin, 2008). Therefore, the implemented solution and the advantages are overwhelming compared to the detrimental effects, and the society should act in favor of the policy (LaVilla & Wynn, 2010). References Berry, R. A. (2005). Labor market policies in Canada and Latin America: Challenges of the new millenium. Boston [u.a.: Kluwer Acad. Publ. Brisbin, R. A. (2008). West Virginia politics and government. Lincoln: University of Nebraska Press. Crowe Horwath International., & CCH Australia Limited. (2009). International master tax guide 2009/10. North Ryde, N.S.W: CCH Australia. El-Saharty, S., & World Bank. (2013). Tackling noncommunicable diseases in Bangladesh: Now is the time. Washington, D.C: The World Bank. Jones, A. M. (2011). The Elgar companion to health economics. Cheltenham: Edward Elgar. LaVilla, J., & Wynn, D. (2010). The wine, beer, & spirits handbook: A guide to styles and service. Hoboken, N.J: Wiley. Morgan, D. F. (2013). Foundations of public service. Viscusi, W. K. (2002). Smoke-filled rooms: A postmortem on the tobacco deal. Chicago: University of Chicago Press. Read More