(Bender 1995).
In recent years, however, local tobacco taxes have been used not only to raise money for government but also as a way to discourage smoking by making cigarettes more expensive. "Approximately 10% of Canadian tobacco consumer's switch brands every year. This represents over $200 million in potential transfers between competitors". (Bender 1995) The tax rate on cigarettes remained unchanged between 1951 and 1982. The rate was "increased from 8 cents to 16 cents per pack as part of the Tax Equity and Fiscal Responsibility Act of 1982". (Lang and Marks 1996) The reason for that increase was stated in the general explanation of that tax act. Under the prior law, cigarette excise tax rates had not been increased since 1951. Since the tax is demanded as a set amount, rather than as a percentage of sales price, the effective level of the "tax had declined by more than 70% in constant dollars since it was last accurate". (www.ash.org).
Tobacco excise tax rates are scheduled to rise under legislation enacted in 1997. That act, the Balanced Budget Act of 1997, provides increased rates in two stages. The rates are first scheduled to increase on January 1, 2000, and then two years later on January 1, 2002. In the case of cigarettes, "the rates will rise 10 cents a pack to 34 cents and then an additional 5 cents to 39 cents per pack. In addition, this legislation established a tax rate for roll-your-own tobacco". (Bender 1995) .
The truth is, tobacco taxes takes a exceedingly high financial tool on society. Yet such high costs do little to discourage the one million teenagers who start smoking every year from picking up one of the most difficult-to-break habits in the world which contributes to the success of the tobacco industry.
Tobacco advertising influences people from all ages and ethic groups. The images portrayed to promote tobacco are made to look as cool and attractive as possible so that people will feel the need for cigarettes/ cigars and will desire them.