Scott, when you talk about additional taxing of tobacco and alcohol, you automatically presume that the Consumers acquire these products exclusively in the shops and these products are taxed and this tax goes to the government hands. But this is historically not right, this is not what we see in reality. There is a border line of the price growth, after which the Consumers start to buy these products from black market - and the government stops to receive income at all.

Tobacco is farmed illegally and is sold on black market - to stop this, one has to apply a special enforcement mechanisms, which hurts these farmers and limits their legal production effort. Alcohol can be easily produced in the home conditions from sugar, potatoes, proso millet, rice, barley etc etc. The prohibition laws never managed to reach the target, but were only causing the destruction of the society itself - in Russia prohibition caused 1917 revolution, in USA it helped to form organized crime structures, in Finland it ruined thousands of families.

The higher are the taxes, the more Consumers turn to alternative supply sources, and as all illegally produced products are produced without following the required expensive heath-related procedures and with breaches in technology, the public health starts to be affected negatively, and the government (which income is reduced by the black market revenues) also has to take a burden to care of the health of those affected by the low quality drinks and the chemicals used to spray the illegally grown tobacco. And if it refuses to do so, then it risks to lose control over the social stability...

So the question is; how many times do we need to be taxed and when will the industries that contribute to chronic ill health, oil and coal just to name two, be taxed enough to off-set some of the health costs?

As a general rule you would be taxed as many times as you allow this to be done. A sheep is not asked when the shearers to arrive.

Idea of overtaxing the industries usually results in the increase of the unemployment - the ideal end is when the industries stop operating completely (except the printing press) and all population receives the dole, but in these cases the weekly payout sometimes becomes enough not to save the ill health of the granny but to buy a box of redheads, imported from Burkina-Faco. But you should not worry, there is plenty of carp in Murray river, so the nation would anyway survive.