Economics in Healthcare - Policy Research Paper

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President Obama & Proposed Tax

I think, President Obama should support the sin tax on all alcoholic beverages. The reason is that the youth of United States is getting involved in excessive drinking day by day; thus resulting in societal as well as personal harms. Excessive usage of alcohol is also a major reason for increased obesity in United States which is in turn causing healthcare problem in the new generation. (Garrett 21) President Obama would probably face resistance from some large alcoholic beverage producers for imposing sin taxes as implementation of this proposal is expected to result in decreasing the demand for Alcohol in United States.

How Much Tax?

At this point, it is very difficult to quote any definite percentage of tax to be imposed. Even if the Congress is in favor of the tax proposal, a higher tax percentage is proposed so that the prices of alcoholic beverages do not remain in the reach of general public.

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(Garrett 21) Currently, in United States, tax on $5 alcoholic beverage bottle is same as that for $50 bottle which should not be the case. Drinkers who have the purchasing power to buy expensive alcoholic beverage are likely to be bound to pay higher amount of taxes (at least 50%) so that they may get discouraged from buying alcoholic beverages.

We can say that sin tax would be an attempt to lowering the consumption of alcoholic beverages among American citizens. It will be better if President Obama supports this tax proposal because it may help United States in implementation of sin taxes on alcohol. It seems to be a very important area of concern for Obama government and requires an immediate decision.

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