Should Christians Support Sin Taxes?

So-called “sin taxes” have been around a very long time — a legislative tactic used to describe fees assessed to discourage vices and encourage virtue.

From taxing whiskey in the late 1700s, cigarettes and tobacco beginning in the 1800s and gambling, alcohol and sugary drinks today, billions of dollars are collected from those items each year right here in the United States. Citizens’ bad habits are financial good news for bureaucrats looking to fill state and federal coffers.

In Florida, a candidate seeking the Republican nomination for governor is proposing a new “sin tax” — this one on creators on “OnlyFans,” the online content subscription service best known for women posting pornographic content.

James Fishback, who is proposing a 50% tax, isn’t motivated by a desire to increase state revenue but instead wants to decrease the exploitation of women and the moral corruption of the site’s male users.

“Women used to aspire to be devoted moms, journalists, doctors, lawyers, nurses, and now they feel like the only way they can get by is by selling their bodies online to men in distant lands,” Mr. Fishback recently said. 

It’s not clear if he’s also proposing a similar sin tax on the site owners, too. 

While two-thirds of the content created on Only Fans is pornographic, some of it is not and features everything from professional coaching to personal fitness advice, cooking tips and various educational offerings. Over 378 million people use the global site.

One of the key questions at the heart of the “sin tax” debate, of course, is whether the taxes discourage consumption. Studies suggest they do. People tend to change behavior when costs go up or down. In fact, some economists have suggested individuals would be even less likely to buy an item if that special tax was posted on the shelf along with the item. 

Dr. Kathryn Wilson is an economics professor at Kent State University.  “Increasing the tax will reduce the behavior (and thereby reduce the negative externalities),” she wrote. 

“Negative externalities” are costs imposed on third parties (e.g., secondhand smoke) as a result of something else.

“How much of an effect the tax has depends on how price sensitive consumers are when it comes to cannabis, gambling, and tobacco,” she continued. “It is important to keep in mind, though, that economic theory also says that a tax can be too high (if it is higher than the marginal negative externality) and result in less well-being in society.” 

By referencing “less well-being” she is likely also referring to the regressive nature of sin taxes — the reality that they are more likely to be paid by the poor or have a proportionately negative financial impact on them.

Some have argued that sin taxes encourage criminal industries to develop and even prosper. Looking to evade tax liabilities and the government tracking them, individuals simply conduct business “under the table” — a popular practice that’s been going on for time immemorial. It’s the broad embrace of this concern that’s led to the tragic legalization of dangerous vices like marijuana and psychedelics. In essence, the government is saying, “Can’t beat ‘em — so we’ll join them.”

Dr. Albert Mohler, president of Southern Seminary, has warned about this proliferation.  

“When government is in the position of making money off sin, don’t be surprised that government says, ‘Maybe sin’s not so bad after all,’” he’s observed.

The late economist Milton Friedman was suspicious of any tax at all, a position many Christians understandably embrace, too, given the government’s proclivity for widespread waste and abuse. He once famously said, “I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.”

Scripture is silent on the idea of “sin taxes” but does make clear we’re to pay what is required (Matthew 22:17-21). However, the Bible is clear that we’re to avoid being enslaved by anything (1 Cor. 6:12), flee sexual immorality (1 Cor. 6:18), treat our body as a temple (1 Cor. 6:19-20), and not get drunk (Proverbs 20:1).

In short, Christians can’t avoid paying taxes in general — but a restrained, faithful, disciplined and sober lifestyle provides major financial relief from those taxes put on the many vices we’d be wise to avoid altogether.