Monday, May 5, 2008

Codependent Addicts: States and Casinos

by Froma Harrop

Loath to tax the citizenry based on income, many states have increasingly turned to cigarette smokers and gamblers for revenues. Gamblers are often smokers, and both groups tend to be of modest or low income.

So after taxing the daylights out of the working class's cigarettes, states can go for a second helping from the quarters the little people dump into the slot machines. This raises revenues that, in the old days, their better-heeled residents might have had to pay. And the fleeced masses don't know to complain. Bingo, as they say.

And when states ban smoking in all entertainment venues but the casino, they end up securing an especially dependable revenue stream. As public policy goes, this means of taxation is highly unattractive. After all, they are funneling their smoker population into another highly taxed and unhealthy activity. As an added anti-social bonus, they discriminate against other businesses in search of the same entertainment dollar.

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