Importance of Sin taxing in providing finances in the healthcare sector

Importance of Sin taxing in providing finances in the healthcare sector

Importance of Sin taxing in providing finances in the healthcare sector

Sin taxing is then taxing on items that are perceived as sin by the community hence the name sin taxing. Mostly the society considers drugs as a sin especially the use of marijuana and other hard drugs. The increasing healthcare costs will not be met through the normal tax approaches that are why it is essential to consider increased sin taxes.

Lawmakers constantly impose higher taxes on drugs such as alcohol and cigarettes since most users cannot function without the drugs. As Such drugs are considered a very rich source of government revenue. Health care is one of essential sectors in a country’s economy hence it should be given utmost consideration.

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All the financial resources can be obtained from increased sin taxes (Cutler and National Bureau of Economic Research, 1996). The government and the health care sector need to develop new approaches that maximize the use of available financial resources. That way there is accountability and transparency as to how the scarce financial resources are used in the health care sector. It is practical to conclude that escalated sin taxing can help in financing the increased health care costs. After a clear scrutiny in past and future economic models, one can see the vital role that sin taxing can play in improving health care.

Reference
Cremer, H., De, D. P., Maldonado, D., & Pestieau, P. (2008). Taxing sin goods and subsidizing health care. München: CESifo.
Cutler, D. M., & National Bureau of Economic Research. (1996). Public Policy for Health Care. Cambridge, Mass: National Bureau of Economic Research.

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