Taxing the tempted: Personal addictions, sustainable revenues and the public good

Abstract

The regulation of gaming, tobacco and alcohol is challenged by new realities. First, fewer people are convinced that government regulation of these indulgences is consistent with a rights-based society. Second, while provincial budgets have continued to climb, the revenues drawn from "sin taxes" (excise taxes from tobacco and alcohol and revenues from gambling) have declined as a proportion of total revenues. As a result, these taxes will not cover the important social and health care costs triggered by the new permissiveness. This study contributes to budget theory by examining the changing policy landscape and sheds light on how Canadian provinces in particular have attempted to balance individual rights, social oversight and provincial revenues. It concludes by speculating on other addictive products that could soon be framed as worthy of taxation.Sommaire : La réglementation concernant les jeux, le tabac et l'alcool est mise au défi par de nouvelles réalités. Tout d'abord, moins de personnes sont convaincues que la réglementation gouvernementale de ces indulgences est en accord avec une société fondée sur le respect des droits. Ensuite, alors que les budgets provinciaux n'ont cessé d'augmenter, les revenus tirés des « taxes sur les vices » (taxes d'accise sur le tabac et l'alcool, et revenus venant des jeux) ont baissé en tant que proportion des recettes totales. Par conséquent, ces taxes ne pourront pas couvrir les coûts important de services sociaux et de soins de santé découlant de cette nouvelle permissivité. En étudiant l'évolution du paysage des politiques, cette étude participe à la théorie du budget, et met en lumière la manière dont les provinces canadiennes en particulier ont tenté de trouver un équilibre entre les droits individuels, le contrôle social et les revenus provinciaux. Nous concluons en émettant des suppositions sur d'autres produits créant une dépendance et qui pourraient bientôt mériter de faire l'objet de taxes d'accise.Canada has normalized the use of cannabis, and its provinces are now retailing it, adding a new dimension to the concept of "public service." Already on the horizon are calls for the decriminalization of drugs like heroin (Germany,

Dimensions of competition in urban cannabis markets

“…Other provinces have started government monopolists for wholesale, as is common in the distribution of alcohol. The use of models and regulations based on alcohol and tobacco is a common feature of the Canadian legal market given the short time provinces had to prepare for the launch of the legal cannabis market (Bird et al, 2019). The differences among provinces are further reflective of the speed with which the legal industry and the associated regulatory structure was created causing governments to use a combination of learning from other jurisdictions, particularly early legalizing American states, differences in approach to alcohol distribution and retail, and pressures from the federal government (Train & Snow, 2019).…”