Why would they do this when they can (and already do) use taxes and tax breaks to dis/incentivize behavior?
Why would they do this when they can (and already do) use taxes and tax breaks to dis/incentivize behavior?
Because they can. You have never heard of government abuse before?
Digital currency is a general solution for absolute control. It's much easier to control and impose and change arbitrary rules on spending or target individuals solely through the administrative state. No laws have to be passed, no congressional hearings, no one you can vote out of office. Just a single bureaucrat you've never heard of flipping a switch and upending your life.
I don't think using something like sin taxes to discourage doing something that actively harms both you and anyone who has to share your air can reasonably be called an abuse of government power, unless you're one of the people who thinks that anything (besides maybe enforcing property rights) is an abuse of government power.
And, again, it's a choice that is actively harmful to the smoker and everyone around them. So if you really want to make a point, I strongly encourage you to find a different example, because this one just sounds like you're a smoker who's angry that they have to pay more in taxes to continue to be able to pollute the air with carcinogens.
It's a mistake to believe the tax is here to fund "whatever activities"