A [three percent] excise tax on the sale of violent video games could fund an array of new supports for children. And -- even better -- such a tax could help fully fund existing programs such as Head Start and successful initiatives to help prevent child abuse and neglect.
This wouldn't be the first time that politicians have used so-called "sin taxes" to fill budget gaps, especially in rough economic times. After all, corrective taxes already generate millions of dollars a year by targeting such all-American vices as cigarettes, liquor, and guns.
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With so much violent media fare, why single out video games? Despite growing evidence of the psychological harm of these games, few would claim that they are the sole cause of family or community violence. But in a nation where 92 percent of children grow up playing them regularly, violent video games aid and abet a popular culture that champions even the most extreme brutality...
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How will we know video-game violence when we see it? Conveniently, most video-game makers already comply with a voluntary ratings system that includes descriptors for violence. By making these ratings mandatory, the government could impose a 3 percent federal tax on every violent video game sold. This would not eliminate or even discourage violence, but just 3 cents on every dollar of sales in the $10 billion a year domestic video-game industry could provide the government with millions of additional dollars a year to support American children.
Putting aside the outrageous comparison to cigarettes, alcohol and guns, did you catch the maneuver regarding cause and effect (or more correctly, non-cause and non-effect)? In the same sentence we are told both that there is "growing evidence" that video games "harm" children, and that there are other causes of family and domestic violence. Then, in the very next sentence we learn that 92% of children play video games. Are 92% of children exhibiting real-world violence? Is youth violence any greater now than in the days of Cops and Robbers, Cowboys and Indians, or G.I. Joe? In other words, not only is there no obvious problem, not only is there no clear evidence that video games contribute to the problem if there is one, but there also can never be any such evidence one way or the other, since so many factors are at work.
But heck, tax it anyway, because we can do neat things with the money.
Notice also the slick "no big deal" argument -- it's only three percent, right? Exactly what they said about the first sin taxes. And Social Security. And the federal income tax. A small tax today is rarely a small tax tomorrow. And be sure to note the "no big deal" switch from video game ratings being voluntary to becoming mandatory, complete with a new government bureaucracy to oversee and enforce the ratings, no doubt.
There are two alternative, indeed mutually exclusive, justifications for a "sin tax" -- to curb the "sinful" behavior by making it more expensive (i.e., exploit elastic demand), or, recognizing that the "sinful" behavior will not be curved, extract revenue from it (i.e., exploit inelastic demand). It is not clear which scenario applies to a three-percent video game tax (it's possible that neither scenario applies if the demand for video games is neither particularly elastic nor inelastic).
Therefore, a video-game tax isn't a true "sin tax" at all, but rather a "warm-fuzzy-feeling" vanity tax.
Not good tax policy. Not good child welfare policy. Not good public policy in any sense.
POST SCRIPT: I'm surprised that childhood obesity wasn't somehow injected into the analysis.
(Cross-linked at Outside the Beltway.)
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