Should tax on alcohol and tobacco be increased to help pay for medical costs?There has always been tax on harmful substances such as tobacco and alcohol, mostly in the form of ‘sin tax.’
Taxation of Alcohol and Tobacco, and its Impact on Medical Costs
There has always been tax on harmful substances such as tobacco and alcohol, mostly in the form of ‘sin tax.’ In as much as these taxes have been put in place to reduce the consumption of these substances, especially among low-income people and teenagers. Every year, millions of people and families are pushed into poverty because of rising healthcare costs. For this reason, governments are being forced to increase the share of healthcare costs which they cover, in an attempt to reduce the healthcare expenses for patients that have the potential to leave them in financial catastrophe. The best way for governments to accomplish this is through increasing the tax rates on tobacco and alcohol. The matter has been the subject of a great debate, and it forms the basis of this research paper. The hypothesis is that taxes on these substances should be increased so that governments can be in a better position to offset the medical bills of substance users and the public alike.
Characteristics of the audience for this research paper
The audience consists of the substance users and governments. These two are the core of the discussion, seeing as it is both their actions that determine the next step with regards to managing healthcare for substance abusers.
The audience can either agree or disagree with the findings of this research papers. Seeing as this research does not represent any form of legal documentation, the audience is at liberty to either support its findings or disagree with them.
Both audiences have a direct influence in the findings of this paper
Scope of the study
The study will explore the effect of taxation on alcohol and tobacco use, and how it reflects on the provision of medical services.
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