Why We Should Increase Cigarette Tax

Congress should act quickly to implement proper legislation and increase taxation on tobacco. Higher taxation will lead to increased government tax revenues and more importantly a healthier Unites States over-time. People opposed to raising cigarette taxes have no solid argument that can possibly combat the potential benefits to society. Marginal social cost is seen as minimal when compared to the benefits in terms of health and well being of the nation. Taxation is key to a successful long-term benefit to the whole United States society.

I recommend that congress implement strong legislation to control the prices of cigarettes in the US. A set of rules should be drawn up to regulate prices nation-wide. State and Federal tax on cigarettes should have a set target and should be adjusted to keep cigarette prices across states similar. Internet sales of cigarette must be subject to these new taxes in order to sustain efficiency. A proposed tax hike of 50 cents a pack fully passed on to consumers will raise the price of smoking by approximately 25% (Georges 2). According to a recent study the number of teenage smokers would decline by approximately 16% and the number of cigarettes consumed by teenage smokers would decline by approximately 14% (WB 15). Some of these smokers might compensate for a reduction in the number of cigarettes smoked by switching to higher nicotine and tar brands, inhaling more deeply, or reducing idle burn time. These factors, while representing a public health concern, are not relevant in evaluating the effect of an excise tax hike on whether an individual chooses to smoke at all (O’Connoll 2). Few smokers begin after the age of 20 so these relatively large reductions in the total number of teenage smokers imply that excise tax increases are very effective ways to prevent the onset of the addictive behavior with health consequences. A 16% decline in the number of young smokers translated into over 2.6 million fewer smokers in the age range of 0 to 17 years old (WB 17).

Beltrame, Julian, Canada Plans High Taxes Again on Cigarettes, The Wall Street Journal,

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