Assignment 4: Persuasive Paper Part 2: Solution and Advantages

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Persuasive Paper Part 1

Cheryl Sonnier

Strayer University Online

ENG 215

Professor Lisa Teitler

2/7/2015

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Introduction

Healthcare is a major concern to many households in the current society. The increases

in chronic diseases due to alcohol and tobacco have further made the costs soar to relatively

higher prices than before. Such illnesses are resulting as a financial catastrophe to the

government. The nation is thus spending a lot on recurrent expenditure rather than on

development. As a result, there is a hitch in economic growth and development. America

should increase the taxes on alcohol and tobacco so as to address the escalating medical costs

(Chaloupka, 2003).

Body

The alcohol and tobacco tax came into place with establishment of Bureau of Alcohol,

Tobacco, firearms and Explosives. The bureau at the time ran under the department of

treasury. However, in 2003 there was the introduction of Alcohol and Tobacco Tax and Trade

bureau that currently collects taxes on behalf of the government. The taxes can be traced from

the excise tax that was instituted on the distilled spirits. Such taxes funded the revolutionary

war activities. The treasury later collected taxes and as well as issued stamps on tobacco and

alcohol products. The move was to ensure the financing of civil war. In twentieth century, the

eighteenth amendment was instituted that brought by the treasury department that led to

punishing the persons who employed illegal liquor proceeds to finance crime. Currently, via

TTB (Alcohol and Tobacco Tax Trade and Trade Bureau), the government has engaged

expatriates such as in chemists, auditors and investigators among others to assist in regulation

of the two products. The bureau has ensured proper payment of taxes related to the two

products hence eliminating malpractices as far as the two products are concerned. Increased

health care costs due to effects of consuming the products have strained the government

resources. Increase in taxes in other sectors in attempts to cover medical costs further leads to

affecting the non-smokers financial wise (Alcohol and Tobacco Tax and Trade Bureau, 2012).

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The first problem is related to money. By taxing alcohol and tobacco, huge amount of

revenue could be collected from the exercise. An increase in tax leading to a tax of fifty cents

per a pack of cigarettes would generate revenue amounting to $80 billion in a span of ten

years. In any case the alcohol tax reached a figure of thirty per cent; revenue amounting to

$250 billion could be collected in a span of ten years. Such funds could be directed towards

providing subsidized care for patients that are not insured hence eliminating the strain that is

in medical care (Reed, 2010).

The second problem is a social one related to changes in lifestyle. Currently, majority

of the low income earners are the ones who engage in such unhealthy activities. That does not

mean that they are absolutely the ones who are in such lifestyle. The taxes once instituted

could lead to change in the lifestyle. Individuals will start deviating away from activities

related to alcohol and tobacco. There will be a total change in life style as people abandon

drinking and smoking. Such individuals might not quit completely but at least, there will be a

reduction in the consumption rate. Low consumption will further interpret to less chronic

illnesses related to the problem in question. The society will eventually give a room for such a

social change. The life style change once integrated into the society will be a means towards

alleviating the consumption of alcohol. The social problem of alcoholism and smoking

tobacco will thus be changed (Reed, 2010).

The next problem is political. The raised tax has been a question for quite some time which

has found its way to politics. The politics is at the heart of the nation’s activities. Its presence

drives or leads to formation of certain laws or amendment. In this case, there have been a lot

of politics related to the issue of taxing the two products. To raise such tax, polices are

required to be developed. The developed policies will stipulate on how the tax measures will

be effected or otherwise made to work. The taxes will thus be regulated by the policies to

ensure that the process of tax collection is efficient. The policy makers thus need materials

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that are related to the issue in order to be able to articulate the matter in congress. As a result,

policies developed that will work to ensure that medical costs are boosted by the raised taxes

(Reed, 2010).

Conclusion

In summary, taxes derived from the alcohol and tobacco can be used to cater for health

care costs. The nation will thus be having quite huge amount of revenue that will ensure some

relief to the medical care. The huge revenue derived from the tax will be an effective

economical move towards addressing the issue of health care. The problem of life style can

further be addressed by the tax. The life style of drinking and consuming lots of the two

products has ultimately had negative effect on health care costs. The consumption has led to

illnesses which in turn translate to more funds directed towards addressing the health care

issue. The problem can be solved with raised tax that discourages the consumption. The third

problem is on politics that will assist in developing policies that will ensure the stipulations of

risen tax are adhered to (Chaloupka, 2003).

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References

Chaloupka, F. (2003). Tobacco and Alcohol Taxation. Impacteen. Retrieved on 21st Jan, 2015

on http://www.impacteen.org/generalarea_PDFs/AMA_chaloupka082103.pdf

Reed, H. (2010). The effect of Increasing Tobacco Taxation: A cost benefits analysis and

public finances Analysis. Action for smoking and Health. Retrieved on 20th January,

2015 on http://www.ash.org.uk/tax/analysis

Alcohol and Tobacco Tax and Trade Bureau. (2012, April 20th). Federal tax Increase and

related tax provision. Retrieved on 20th Jan, 2015 from

http://www.ttb.gov/main_pages/schip-summary.shtml