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Finance & economics | In search of lost revenue

Sin taxes are suffering from a shortage of sinners

Governments across the rich world are looking for alternatives

A cannabis farm worker de-leafs cannabis plants at Glass House Farms
in Camarillo, CA, USA.Photograph: Getty Images
Oct 31st 2024
Share

Pity the California taxman. The state has a yawning budget deficit,
which politicians are attempting to narrow. Local laws make it
difficult to raise taxes, requiring a two-thirds majority. Worse,
once-reliable sources of funds are running dry. Fuel-tax revenues are
forecast to fall sharply as drivers switch to electric vehicles.
Revenues from cigarette taxes have fallen by $500m, or 29%, since
2017; now those from alcohol taxes are dropping, too. This is a
concern: at present, revenues from the trio of taxes amount to nearly
half of what the state spends on higher education.

This article appeared in the Finance & economics section of the print
edition under the headline "In search of lost revenue"

Finance & economics November 2nd 2024

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  * Ireland's government has an unusual problem: too much money
  * Sin taxes are suffering from a shortage of sinners
  * Will bond vigilantes come for America's next president?
  * Greenland faces one of history's great resource rushes--and curses

[20241102_DE_US]

From the November 2nd 2024 edition

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The return of Trumponomics excites markets but frightens the world

It may bring stronger growth, higher inflation and a global trade war

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Why investors' "Trump trade" might be flawed

Markets are betting Trump 2.0 would boost the dollar. It could fall
instead

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A small Greenlandic cabin is dwarfed by a giant international ship
filled with mining equipment.

Greenland faces one of history's great resource rushes--and curses

The territory sits on an astounding number of critical minerals

---------------------------------------------------------------------

Ireland's government has an unusual problem: too much money

A tax windfall has added to already overflowing coffers

American men are getting back to work

The ultra-gloomy picture painted by politicians is no longer accurate

Why China needs to fill its empty homes

The country's economy is broken. A recovery requires a healthier
property market

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