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Some Ethical, Legal and Economic Problems with the Use and Abuse of Excise Taxes as a Tool of Social Engineering

Excise taxes are one way for governments to raise the funds needed to provide services. The problem with excise taxes is that they can be imposed for other purposes as well. One other use of excise taxes is to protect special interest groups from competition. Another use is to alter behavior, to dissuade individuals from consuming politically incorrect substances like tobacco and alcohol, or to punish them with punitive tax rates if they do. This article explores some of the ethical, economic and legal issues involved in using excise taxes as a tool of social engineering to alter behavior or to punish politically incorrect behavior.