Sunday, March 29, 2015

Gambling in the USA - Rich Purdy

Gambling in the United States has legal restrictions that vary depending on state and type of gambling (of which there are many: charitable, parimutuel, lotteries, casinos sports, racetrack, etc.) . All but seven states have lotteries, whereas only twenty states allow commercial (non-tribal) casinos in some form. New Jersey governor Chris Christie made news recently for trying, unsuccessfully thus far, to bring legal sports betting to New Jersey casinos and racetracks. Critics of gambling believe it has negative externalities like corruption and addiction, and is effectively a regressive tax on those already worst off.

Despite the restrictions in place, gambling generates huge revenues and creates jobs. In 2007, legal gambling activities generated about $95 billion in revenue in the United States. Commercial casinos employed 354,000 and generated state and local tax revenues of $5.2 billion in 2006. Unfortunately, it is impossible to measure the amount of intangible utility (happiness and sadness) gamblers experience by participating.

I believe that all types of gambling should be legal in all fifty states. The underground market is enormous today -- no matter what the laws are, people (especially addicts) have the ability to wager their money with little risk of punishment. If gambling is legal, the bets we place will benefit the economy, and run no risk of the crime associated with black market betting. It would also eliminate the costs associated with the restriction of gambling.

Thursday, March 26, 2015

Fat Tax - Aaron Ogunro

I believe a fat tax would decrease obesity in the United States. Increasing a tax on unhealthy foods would force people to make healthier decisions when it comes to food choices. When the United States increased the taxes on cigarettes, smoking went down considerably, and the same thing could happen to obesity if a fat tax is enforced. Of course, food isn’t the only reason obesity exists. This fat tax would solve part of the problem, but physical activity needs to be increased as well. These taxes would be especially helpful in fast food restaurants. Their main attraction is that they are a cheap form of sustenance. Increasing the tax on fast food items would deter many people from eating out so often. The USA has made great strides in trying to reduce obesity. Some examples include forcing restaurants to show the caloric intake of each of their items so people can be informed about what they are putting in their bodies. This has forced all types of restaurants to ensure they are providing healthier and better quality food.

Most importantly, reducing obesity has major economic advantages. Having a healthier population means having a stronger work force. Obesity causes work place absences due to obesity-related illnesses and deaths. Estimates say that obesity-related costs in the US account for 21% of annual medical expenditures, which is about 190 billion dollars per year. By creating a tax on fatty foods and beverages, we will be able to reduce the consumption of fatty foods and create revenue to combat the money lost each year due to obesity-related problems.


Wednesday, March 25, 2015

Should churches continue to be tax-exempt? - Dan Hickey

Since the formation of the United States of America, and officially since 1894, churches have been tax-exempt in all 50 states.  Specifically, they do not pay property taxes and their donations are tax-deductible.  This raises the question of whether or not this follows or goes against the separation of church and state.

One could argue that this adheres to the First Amendment because it completely separates religion and government.  Furthermore, since 1954, laws against the endorsement of political campaigns by churches has existed, with the government revoking the exemption benefits of several churches as a result.

On the other hand, people may argue that this gives churches special treatment in not taxing them.  A fair argument is found in that forgoing taxes on such a large sector is similar to subsidizing it.  The government is giving up billions of dollars worth of taxes each year to continue this policy, as its deficit still looms large.  An interesting case is that the Church of Scientology lost its privileges because the IRS viewed it as an entertainment business.