Adam J. Hoffer, researcher of the Size, Growth and Creation of the Sindustry discusses why certain states and municipalities tax products at different rates.

As states face one of the longest recessions in the history of the United States, some are looking to privatize state run liquor sales for additional revenue.

There are several states that do not allow grocery stores to sell wine in grocery stores. However, in the midst of dealing with budget woes and shrinking revenues many states are considering changing existing laws to now allow the sell of wine in grocery stores as a means to increase revenue for the state.

With state revenues dwindling many states turned to excise taxes to decrease budget gaps. Close to a dozen states increased their cigarette taxes. According to Stateline.org, “New York, New Jersey and North Carolina raised both tobacco and alcohol taxes. Kentucky and Massachusetts ended the sales tax exemption of alcoholic beverages, while Colorado ended its sales tax break on cigarettes.” Often sin taxes on certain sugary products are used to help fight obesity as well.