How The Cigarette Industry Affects Society With Disease And Reduces Social Economic Welfare

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.

History has proven that government penalties, in the form of taxes, deter smoking. The 2000 U.S. Surgeon General’s Report, Reducing Tobacco Use, found that raising tobacco-product prices decreases the prevalence of tobacco use, and tobacco tax increases produce significant long-term improvements in health. From its review of existing research, the report concluded that raising tobacco taxes is one of the most effective tobacco prevention and control strategies (7). Along with price increases, mass-media campaigns and smoking bans have made cigarette smoking pretty much unacceptable in today’s society. “Today, approximately 22 percent of adults age twenty-two and older are smokers, compared with 33 percent in 1979” (Thorpe 1440). It is clear, from these examples, the use of penalties to deter the unhealthy behavior of smoking is a successful intervention.

Many drugs are used, misused, and abused in American society today. Some of these carry stigma in the general population, forcing users into an underground drug subculture. Others are accepted and almost promoted under certain circumstances. Tobacco is one of those drugs. Tobacco will be discussed in the context of cigarette smoking. This is not to undermine the existence or danger of other forms of tobacco, but instead to have an exhaustive discussion of cigarette smoking and its societal impact. Cigarettes are a means of inhaling tobacco, where it enters the lungs and is absorbed through the blood vessels, traveling to the heart, from which it is finally pumped to the brain (Hogan, Gabrielsen, Luna, and Grothaus 2003:76). Cigarettes are detrimental to society because they not only affect the user who chooses to smoke; they impact people around them through second-hand and residual smoke. The damage done by cigarettes is not impossible to address. Successful prevention measures are already in place, but this paper intends to suggest other more direct measures, especially related to statutory regulations.

Cigarette Companies in Capitalism Tobacco is one of the largest industries contributing to the economy of US. As reported by The Tobacco Atlas, the revenue of global tobacco industry is about a half trillion US dollars annually. In 2010, the combined profit of Coca-Cola, Microsoft, and McDonaldswas 35.1 billion US dollars, equal to the combined profit of six leading tobacco companies.(Alday)Tobacco industry is now harmful than ever. Although people realize that tobacco is harmful to one's health through tobacco taxes, smoke-free public places, advertisement bans, mass media, and health warnings, many still smoke with the influence of propaganda that cigarette companies have made. These companiespromote young smokers through the use of

The purpose of this economics report is to illustrate the economic concerns and arguments around smoking in Australia and the methods of taxing aimed at reducing the smoking rate. The report will use a variety of research articles, economic theories and models to report on this issue so that the CEO of the Cancer Council of Australia has a thorough understanding.

In the article ‘Cigarette tax hike sparks panic buying’, Hall (2010) discusses the effects of tax increase on cigarettes. The government has decided to raise the tax on cigarettes by 25%, costing $2.16 more on a pack of 30 cigarettes. This government intervention is an attempt to stop people from smoking and reduce the health bill caused by those who smoke. The increase in tax is expected to save $5 billion more of the people’s tax dollars and the government decided that it will be put into a better use for its health and hospitals reparations. This contractionary fiscal policy is expected to reduce the total tobacco consumption by approximately six percent and drive down the number of smokers by 87,000.

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

Tobacco used is a major epidemic around the world. Many people start this terrible habit because stress, personal issues, or in the case of teenagers to fit in. They do not realize that when they smoke they are actually poisoning their body, and ignore the many health risks it poses not only to them, but those around them. According to the CDC (2016) smoking causes 90% of all lung cancer deaths in men and women, and 80% of all deaths from chronic obstructive pulmonary disease. Due to these reasons Companies are being required to include warning labels in the packaging. I personally agree with these regulations. The warning labels on Cigarette package describe the harmful effects of tobacco use. Their graphic images are intended to inform people

10 Really Bad Things the Tobacco Industry Has Done to Entice Kids to Start Smoking. (2016.). Retrieved April 12, 2016, from http://www.lung.org/our-initiatives/tobacco/reports-resources/sotc/by-the-numbers/10-really-bad-things-the.html?referrer=https://www.google.com/

The marginal benefit and marginal cost of cigarettes are in competitive market equilibrium without government intervention, however, the negative social cost of smoking to society would likely lead to market failure without the involvement of the government (reference). Tobacco not only affects the health of its consumers, it can also affect the health of non-smokers who involuntarily inhale second-hand smoke (reference). With the continuation of tobacco consumption, society faces increased tax rates, a loss of productivity and an opportunity cost from patients suffering tobacco-induced health problems, potentially robbing others with unpreventable conditions from the medical resources and treatment they require. Each year Australians spend

Drug abuse, whether alcohol, tobacco, prescription or illicit, continues to burden society, economics, medical care systems, and the family dynamic. The World Health Organization (WHO) estimates that globally 185 million people are illicit drug users and an astounding 1.3 billion individuals are smokers.1 Smoking related deaths, estimated at nearly 5 million worldwide, continue to be the leading preventable cause of death. Additionally, in the United States alone, $167 billion in annual health-related economic loss can be attributed to smoking.2 Although there are roughly only 200,000 deaths reported to be directly associated with illicit drug use, the detriment to family and society, and the economic costs associated with crime, law enforcement,

Economic analysis of the effects of tax policy on cigarettes is motivated by the desire to understand how economic forces influences tobacco consumption. This essay will demonstrate how tax policy is a well recognised and supported method of reducing tobacco consumption and will show how tax policy is used to influence supply and demand of tobacco products. The tax on cigarettes in Australia, often called excise, is imposed on cigarette manufacturers. The excise is then passed on to consumers with the effect being a higher price and lower demand.

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

Moreover, smoking particularly adversely affects women's reproductive health, and smoke exposure on children has had detrimental and some sometimes fatal effects on children. Many studies have examined and outlined the adverse effects of maternal smoking on both the mother as well as on the baby and/or infant ( Hofhuis, de Jongste, & Merkus, 2003 & Woolbright 1994). Many states such as Alabama required documentation on birth certificates of tobacco use of mothers (Woolbright, 1994). Despite the Surgeon general's warning that maternal smoking may result in premature birth, fetal injury, or dangerously low birth rate, fifteen to thirty-seven percent of pregnant women still smoke (Hofhuis, de Jongste, & Merkus, 2003). Mothers who smoke

A dangerous product that can kill a human every second around the world and can carry a large cost for families and their treatment for diseases such as cancer and heart disease is caused by the product called tobacco. Tobacco-related diseases and deaths can affect smokers’ lives at an early stage and cause a decline in productivity and income. Smoking will not only affect the person’s life, but will also affect people around him or her by causing many diseases. Nicotine found in cigarettes is a strong addiction, substance equal to heroin and cocaine; therefore, it will be difficult to quit smoking, but to convince smokers to get rid of the smoking habit, governments can raise tobacco products’ taxation, make users pay higher health insurance premiums, and make smokers pay a health tax.