Cigarette Tax Impact

The city is going to see a significant drop in revenue, with this bill. New York City has the highest cigarette tax rate in the United States with the minimum price for per pack of cigarettes in the city is $10.50. The Campaign for Tobacco-Free Kids, illustrate that of the minimum amount, $1.50 of that goes to the city of New York and $4.35 is taxed by the state of New York. It is clear these administrations will see a hindrance with the deficiency of these sales of raising the age.

This article is very informative toward the purpose of increasing excise taxes. I believe that Joey Connor did an excellent job at pointing out the effects of the tax increase on tobacco products. He provided information on previous tax rates, so readers can have a clear idea of the increase percentage of taxes. He also supported his arguments by incorporating other sources in his article. For instance, he incorporated the analysis done by the National Public Radio on how the increase in price of cigarettes will affect the consumer behavior.

We have all been there in line waiting to purchase something from the store; we step up for our turn take out money that we believe should be enough only to find out that we forgot to count in the taxes and now have to dig into our purse, wallet or pocket to find the extra change, or in some cases dollars. There is a joke that there are a few things we are guaranteed in life, taxes and death. While it may be a joke it holds a fair amount of truth, depending on where you live. Taxes are everywhere “invisible” or obvious taxes, but lets focus more closely on the taxes involving cigarettes. To me as a non smoker it makes sense and I am for it, taxes help the governments budget and other areas. However one must begin to wondered the effects taxes on one of the biggest markets in the United States have, for those who do smoke and those who enjoy an, excuse my banter, but live shaver.

The affect this plan would have on our citizens is mostly positive; all citizens would be positively affected by reductions in prices, and the lower class would be positively affected by the increase in jobs, and the eventual stabilization of the economy would, of course, affect everybody positively. Unfortunately, this plan means increase taxes for those who smoke and those who make over $100,000 a year. Citizens, I ask that you please be understanding of this. For the time being, those who are less fortunate than you cannot afford to pay the taxes; they must concentrate their

In the article it explain how raising taxes on cigarettes will benefits teens in the future: “Studies indicate that 90 percent of smokers start as teens. An estimated 17,000 California kids get hooked on smoking and one-third of them will eventually die from a tobacco-related illness. In every other state that has raised the tobacco tax, smoking rates have gone down among teens” (Western Dental Joins California Health Leaders Supporting Proposition 56). Most people would agree that habits are formed at young age, and we all know that bad habits are hard to quit, specially those that creates addiction such as cigarettes. If the price of cigarettes is raise, teens will not be able to afford them since teens are limited in money which will prevent them from creating that addiction. Also, we will be able to have more control over impulsive teenagers, is not that we are coddling them but rather guide them to do what is right for them and break the cycle of smokers. Furthermore,

Although the negative roles of smoking are very apparent, the tobacco industry plays an important social role in the world. Many teens use cigarettes as a means for bonding with their peers. Adults also use cigarettes as a form of "ice breaker" when socializing with others. The tobacco industry also provides a great source of revenue for the economy. The federal taxes on tobacco products bring in billions of dollars into the government's budget for various programs. So while the ruling could pose devastating effects on Canadian tobacco companies, society will benefit in the

Campaingers hope that a tax increase will help to deter people from smoking and influence smokers to kick the habit completely. In addition to possibly reducing the number of smokers this campaign is forcasted to raise about $1 Billion dollars annually. Supporters of the tax stated that this huge amount of money can help save lives and increase the health of a number of Californians. With $1 billion annually Medi-Cal coverage can be given to indivdiuals that are not able to and also programs can be created to help provide treatment for tobacco-related diseased and to reduce

Government passed a law making cigarettes illegal would have numerous results. First, making cigarettes illegal means people will smoke les cigarettes. Therefore, smoking people can be healthier, leading to a longer life span. Second, illegalize smoking would also causing black markets. Because cigarette is addictive, people who smoke would do anything to get cigarettes, black market would cause crime rate to rise. Third, government will receive no taxes from cigarette industry due to the illegalizing of it. This will cause the government get less money can provide poor service. Forth, because of the illegalization, tobacco farmers will lose their jobs. Furthermore, there would be idle

California Proposition 56, the tobacco tax increase initiative will increase the tax from $.87 to $2.87 per pack of cigarettes and all tobacco products including e-cigarettes. The $2.00 additional tax will support training for doctors, prevention and intervention of oral diseases, research for cancer, tobacco related, heart, and lung diseases, and fund initiatives in after school programs that focus on tobacco prevention and intervention (“Ballotpedia”, 2016).

The state of Pennsylvania already leads the nation in the collection of “sin taxes’, collecting over $2.6 billion every year. The proposed tax of 40% on e-cigarettes would raise the cost of a product, which is often a substitute for traditional cigarettes. In addition, to this tax

In addition to the cigarette tax hike by the pack, as of July 1, smokers were again bombarded with another equivalent increase, as the sale of all tobacco products, including electronic cigarettes were levied under the state’s law to be taxed $2.87.

Cigarette taxation is the fastest growing revenue in the United States. The article says that about 1.3 billion people around the world smoke, which is really high. All over America, underage smoking is happening, and the government thinks raising the taxes on cigarettes is a way they can stop this. According to the article, if the government increases cigarette taxes by 50%, it reduces the overall consumption of cigarettes by 20%. This is because a rise of price will mean that people spend less as they have to pay more from the income. Taxes on cigarettes could be raised because higher taxes on cigarettes will lower the overall consumption but there are disadvantages as well.

There are many cities who have implemented bans on cigarettes, but China overall is still the leading consumer of cigarettes in the world. A countrywide tax on cigarettes has been proposed to their Ministry of Finance, and Ministry of Economics and Trade, but a decision has yet to be made. Tobacco production provides substantial revenue to the government and a tax increase will have a significant effect on the central government and reduction of consumption of cigarettes. According to a study done by the group proposing the tax, “a 25% tax increase will have an overall monetary benefit that far exceeds the negative impact on the cigarette industry and tobacco farmers. In financial terms alone, not counting the number of lives saved and medical care cost savings, the gain of the central government tax revenue (24.58 billion Yuan) twice exceeds the loss of tobacco farmers’ earnings, tobacco industry workers’ earning and loss of industry and local government revenue (11.74 billion Yuan)” (Hu TW 107). There many components to this calculation, but some factors included the reduction of cigarette consumption, the number of lives saved, savings in medical care costs, gains in productivity due to avoidance of premature death, industry revenue lost, lost jobs in cigarette industry, loss of tobacco income, and loss of local government

“In Canada, the federal excise tax on a carton of cigarettes is $17 (about 19-20 USD), according to background material released with the study.” (Kirkley) Sharon Kirkley, a senior medical reporter for Postmedia News, has studied the cigarette and tobacco related deaths in Canada and how the “sin tax” affects the death rate. A rise in the price of “sin taxes,” taxes on alcohol and tobacco, would help the price of American health care decrease.

Another problem caused by these policies is the loss of government revenue from tobacco taxes. According to a September 2013 report by the International Tax and Investment Center and Oxford Economics (ITIC-OE), In 2011, the Legal Domestic Sales of cigarettes fell by 80.6%, from 308 million cigarettes in 2010, to just 60 million cigarettes a year after the tax increase. Total Consumption (legal and illicit) is estimated at 317.9 million cigarettes in 2013, down 9.5% from 2012. However, only 2.4% or 7.7 million cigarettes constitute Legal Cigarettes Consumption. In 2013, excise tax loss as a percentage of potential total excise tax revenues is estimated to be 99.6% (US$ 62 million) a rise from 93.4% in 2012, the highest amongst the 14 Asia countries surveyed. Actual revenues from excise duties fell from US$ 21,627906 in 2010 to US$ 233,000 in 2013.