by 
The Curious Bag
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When a government needs to make up a budget shortfall, it often brings up the idea of increasing "sin taxes." Sin taxes are a common way that governments raise funds.
Identification
"Sin taxes" are a government-sanctioned tax on products or services that society tends to consider vices, according to Investopedia. Beer, liquor and cigarettes are the most commonly taxed "sin" products.
History
One of the first recorded examples of a sin tax was in the early 1500s. Pope Leo X taxed legalized prostitution, according to "Time" magazine.
Example
In 2009, the U.S. government levied a $1.01 sin tax on each pack of cigarettes, according to "Time."
Benefit
Sin taxes apply only to certain products or services; those who don't use them don't pay the taxes.
Criticism
According to USlegal.com, critics of sin taxes say they promote a black market for "sin" products and services, instead of reducing their use. Critics also say that governments shouldn't benefit financially from the use of such products and services.
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