Cigarette Tax Economics
The Federal Government and each of the 50 state governments have placed an excise tax on the sale of cigarettes. Several states have raised their tax in the past couple of years. “Currently, Massachusetts has the highest tax at $1.51, and Virginia has the lowest at $.025” (“State excise tax,” 2003). In addition to the state and federal tax, some counties and cities also place a tax on cigarettes. For example, if a smoker buys a pack of cigarettes in New York City, not only do they pay the state tax of $1.50, but they also pay a city tax of $1.50. With the federal tax of $.39, that brings the total tax to $3.39, and pushes the price of a pack of cigarettes to approximately $7.50. The government places these taxes on cigarettes for two reasons. The first reason is to reduce the number of Americans who smoke. “Economists Gary S. Becker, and Michael Grossman estimate that a 10 percent increase in cigarette taxes eventually leads to an 8 percent decrease in cigarette consumption” (“Do Higher Cigarette,” 1994). Some other studies have shown the decrease in consumption at 3 to 5 percent. The second reason, obviously, is to raise the government’s revenue. Many of the tax increase bills specifically state which s
Being a non-smoker myself, before studying the topic of cigarette taxes, I used to favor every increase in cigarette taxes that I heard of. However, after researching all these unintended consequences of the taxes, I believe there is a strong case for the government to make the tax the same amount throughout the country. Governments also try to reduce smoking by other means. They pass laws on the advertising of tobacco and selling cigarettes to minors. Warning labels are required on all products. The government funds anti-tobacco campaigns, which we see on television all the time. There has also been recent legislation passed in New York and Florida placing restrictions on smoking in public places. Lately, there have been arguments for the government to provide subsidies on products such as nicotine gum and the patch to help people quit smoking. I think we all know by now, smokers as well as non-smokers, that cigarettes are extremely unhealthy and highly addictive. Let’s look at the some costs of cigarettes on society. Smokers can expect to have more heath problems in their lifetimes, which means higher healthcare costs. However, some people argue that non-smokers live longer than smokers do and will use healthcare services for a longer period of time, thus equalizing these costs. Smokers tend to be absent from work more often, resulting in production losses to society. Fires can be the result of a smoldering cigarette. Also there is a serious problem with litter and cigarettes also pollute the air. Smoking not only affects the smoker’s health, but also the health of their children, friends, and family from second hand smoke. The American Heart Associat
Some topics in this essay:
Michael Grossman,
Los Angeles,
Native Americans,
Heart Association,
York Florida,
York City,
Federal Government,
Jesse Ventura,
Peat Marwick,
North Carolina,
cigarette taxes,
taxes cigarettes,
avoid paying,
pack cigarettes,
avoid paying tax,
cigarettes york,
tax $150,
increase cigarette,
“do cigarette”,
york city,
cigarette” 1994,
cigarettes york city,
increase cigarette taxes,
“do cigarette” 1994,
pack cigarettes york,
Join now to see the rest of the essay!
Approximate Word count = 1141
Approximate Pages = 5 (250 words per page double spaced)
More Essays on Cigarette Tax Economics Professional Papers: |
CUSTOMER SERVICES
|
|
Saved Papers
You haven't saved any papers.
|