Nick Shaxson ■ Should we be giving tax breaks to tobacco companies?
[vc_row][vc_column][vc_column_text]From Citizens for Tax Justice in the U.S., a post that begins by discussing federal tax breaks for manufacturing corporations. And they ask:
“Tobacco companies “manufacture” cigarettes—but do Americans, or lawmakers, really think it’s a good idea for the federal government to subsidise this activity? New financial reports from major corporations in this sector show that cigarette makers are enjoying substantial manufacturing tax breaks for producing products that kill people.”
It notes that Altria, the maker of Marlboros, cut its federal taxes by $799m over the past years just by using that deduction. (Also see work of our friends at the U.S. Campaign for Tobacco Free Kids.)
We’d add that Article 6 of the World Health Organisation’s Framework Convention on Tobacco Control is clear on the importance of tobacco tax, and this reflects scientific and political consensus on the extreme ativan health costs – that is to say, deaths and lung cancer and other nasties – of not getting it right. Not taxing tobacco consumption sufficiently is one thing: subsidising production (of death) through the manufacturing deduction goes still further in the wrong direction.
This can only be seen as reflecting either very short and myopic policymaker horizons (trading what may or may not produce a job today, for a sure-fire slew of painful deaths tomorrow); or the continuing political power and influence of Big Tobacco: as the WHO puts it: the Tobacco industry is part of the problem, not of the solution. CTJ continue:
“At a minimum, policymakers should be asking whether it makes any sense to subsidize an industry producing products that kill thousands of Americans a year.”
And it’s not just Americans. It’s everyone.
Oh, and there’s this.
And this too.
Indonesia launches investigation following ‘Macao Money Machine’ report
October 2021 Spanish language podcast, Justicia ImPositiva: Los Pandora Papers, el Bitcoin en El Salvador y crisis de la inmobiliaria en China #64
Pandora Papers and (South Dakota) trusts: Why do criminals and the rich like them so much?
Pandora Papers: law firms must disclose clients’ names (like they’ve started doing in the US of all places)
Tax Justice Network Arabic podcast #46: ضريبة تثير جدلا لدى صانعي المحتوى الرقمي في مصر
The Tax Justice Network’s French podcast: Afrique: Plus de transparence entre administrations fiscales pour lutter contre les flux financiers illicites #32
Pandora Papers shows transparency failure is an accountability failure
Tax Justice Network Portuguese podcast #29: Fim à tributação que penaliza os mais pobres
Isle of Man banking data leak reveals how sharing data can identify offshore strategies and improve beneficial ownership
Isle of Man banking leak: Analysing banking data to reveal offshore strategies
29 September 2021