Sin taxes are a means of generating revenue but can disproportionately affect lower-income taxpayers
Episode Description
The Wharton School Professor Ben Lockwood joins host Dan Loney to discuss "sin taxes" and their efficacy in curbing "sin" behaviors, like soda consumption. Lockwood remarks that in cases where taxes successfully curb behavior, they concurrently fail to generate revenue for a city.
EPISODE OVERVIEW Wharton professor Benjamin Lockwood’s research into sin taxes finds that they work to raise revenue and curb consumption, but the long-term effects aren’t as clear. This episode is part of a series called “Tax Talk: Navigating the Numbers.”
PODCAST OVERVIEW Every day, business scholars answer pressing questions in their research - but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.
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Brief Summary
Sin taxes on soda, cigarettes, and alcohol may disproportionately affect lower-income individuals; progressive income taxes could offset this impact.
Key points
- The Impact of Sin Taxes. Sin taxes disproportionately affect lower-income individuals, raising concerns about fairness.
- Balancing Tax Policies. Progressive income taxes can offset the burden of sin taxes on the poor.
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Episode highlights
- The Impact of Sin TaxesSin taxes disproportionately affect lower-income individuals, raising concerns about fairness.“Be careful of taxes that hit the poorer hardest.”0:15Mar 31, 2025
- Balancing Tax PoliciesProgressive income taxes can offset the burden of sin taxes on the poor.“Offsetting with a more progressive income tax is key.”0:20Mar 31, 2025


