
Caught cheating: When sin taxes forge unforeseen fallout
From sugar to cigarettes, raising taxes on certain products is intended to discourage unhealthy or undesirable behaviors. These taxes — called sin taxes — may be effective in reducing the use of those products, but is that the only consequence?
From sugar to cigarettes, raising taxes on certain products is intended to discourage unhealthy or undesirable behaviors. These taxes — called sin taxes — may be effective in reducing the use of those products, but is that the only consequence?
In this story published Dec. 14, 2021, on Bloomberg Tax:
We then examine how their likelihood of committing fraud changes around a large increase in federal sales taxes on cigarettes. We find that in the month immediately after the tax hike, smokers ramp up their cheating by about half — this represents an increase of about 1.1 fraudulent trips per month.
– David Kenchington, assistant professor of accountancy
– Roger White, associate professor of accountancy
Latest news
- Construction material tariffs could slow metro Phoenix home building, raise costs
Arizona's housing supply could be affected by tariffs, says ASU real estate expert.
- Master's student Tyler Lai comes to AI in business program to become future tech leader
Tyler Lai (BS Computer Information Systems '24, MS-AIB '25) was an undergraduate student at ASU’…
- ASU student team places third in global sustainability competition
Business and engineering students collaborate on an artificial intelligence-driven agriculture…