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Among tax levies, so-called sin taxes are among the most controversial. Critics argue that adding costs to alcohol, cigarettes, betting on ponies and the like unfairly hurts lower-income people. Proponents say the taxes promote health -- making cigarettes more expensive, for example, thus reducing smoking -- a consequence that seems true, according to many studies. States say they put the revenue to good use, for schools and health-care services.

Sinful Revenue

Among tax levies, so-called sin taxes are among the most controversial. Critics argue that adding costs to alcohol, cigarettes, betting on ponies and the like unfairly hurts lower-income people. Proponents say the taxes promote health -- making cigarettes more expensive, for example, thus reducing smoking -- a consequence that seems true, according to many studies. States say they put the revenue to good use, for schools and health-care services.

To read the original article: The Dirty Dozen: 12 States That Bet Big on Sin: Sinful Revenue - Bloomberg