Categorization and renaming alone let regulated industries evade taxes and bans

Evidence

Language can also be used to circumvent regulations. For example, pipe tobacco and cigars are taxed at a much lower rate than cigarettes. In circumventive ingenuity, to avoid the higher tax some tobacco companies relabeled tobacco used to roll one’s own cigarettes as pipe tobacco (Rabin, 2012). By altering the size of a cigarette product and relabeling it, the industry was able to get around additional taxes and regulations. Cigarettes in the form of small cigars are also taxed at a lower rate. Additionally, the U.S. Food and Drug Administration had banned fruit flavors in cigarettes, which had been added to lure youngsters to smoking, but the ban does not cover pipe tobacco or cigars. Linguistic and design maneuvers enabled companies to evade both cigarette taxes and flavor bans. Regulators usually find themselves playing catch-up because, for every solution they come up with, those being regulated will find a loophole. — Albert Bandura, Moral Disengagement, 1653

Categorization

  • corroborated: 2 independent passages support this claim — Albert Bandura, Moral Disengagement: How People Do Harm…, 1653