The Pros And Cons Of Tobacco Price Increase

even though the author of this article talks in particular about excise taxes, this initiative will eventually affect the buyer because they will have to pay more for the this products they are consuming. In class, we have a discussion on sales taxes and the incidence of tax. Even though cigarette distributers are required by law to pay this tax, the consumers of cigarettes are going to end up paying more for the increase of taxes. Therefore, this article is also related to the legal and economic incidence of a

market, in response of falling market prices of tobacco due to the oversaturated tobacco market, famers

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.

Nevertheless, the amount of smokers still has a significally high rate. A person does not think about the severe consequences which may result from smoking. Careless to their health, smokers consider themselves invulnerable, and the effects of smoking does not start immediately , however, after a number of years, depending on its intensity, the number of smoked cigarette smoke inhalation depth, duration of smoking it leads to harmful side effects. Smoking harms people not only their health but also the health of the people around him. Tobacco smoke cause damages to the body of a smoking individual, but also their wallet. The systematic use of even small doses of nicotine can cause a dependence. Today, many states, has been fighting against smoking. Smoking is prohibited in many public places and prohibited tobacco advertising. A healthy person runs the risk of making their addiction permanent .Once started, quitting is very difficult, so it is better not to start smoking than to all the forces to deal with this bad habit. Sadly, this is easier said than done, smoking is a choice and their choices effect others as well. By participating in physical activities, sports, training, going to the libraries, or attending clubs and so on, are opposed to the development of bad habits, and, especially the habits of tobacco use. Adoption of a healthy way of life is important. By all means contribute to its decision - the duty of all people and every citizen of United

When the medical associate researches the health ethnics of smoking they should have research tobacco is legal substance, people have a choice. The banning of smoking in public place only forces the people to smoke in the privacy of their homes even more. This will affect most eating and drinking establishments financially. The government will stand by these laws for banning smoking but do they stand by the taxes that are made for the selling of

Increase taxation of tobacco products in South Korea to reduce the levels of noncommunicable diseases

It is crucial that tobacco usage in the United States ends because tobacco not only negatively affects the user, but also the people indirectly exposed, and as a result, the economy. Tobacco appears to be very profitable as a consumable product to the nation because of its wide usage, but the costs needed to cover medical charges overshadow the profit. Tobacco usage also demands a high price of human lives. Both the farming and waste of tobacco products damage the environment. The ceasing of American tobacco use will positively affect the country by creating a safer environment, reducing tobacco related deaths and illnesses, and providing cleaner communities.

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 use of tobacco products is just one of many factors that influence the price of insurance. Unlike some other deciding factors of insurance prices, people choose to use tobacco products. There is plenty of information about the dangers of tobacco products. Tobacco products’ packaging warns that use of the products will have negative effects on a person’s health. There are also numerous public service announcements circulating on television and the internet warning people to stay away from tobacco. Many systems are also available, often paid for by insurance companies, that will help a person quit using tobacco. These vary widely, from patches that a person wears, to nicotine gum. The increase in the cost of insurance for tobacco users

Tobacco is one of the world's dangerous drug which is haunting human lives to death. Over a billion adults are addicted to this drug and wasting their money, time and health. Nowadays there has been an ongoing debate/discussion among many people about the role of government in restricting the usage of Tobacco and thereby safeguarding the health of the public. In my personal opinion, both government and the Individual together needs to work to overcome this problem.

Australia is the world leader in tobacco control, as they became the first country that implemented plain package policy. Since December 2012, all tobacco products which are traded and brought to Australia must be in plain packaging in order to implement the National Tobacco Strategy (NTS) 2012 – 2018. (National Tobacco Strategy, 2012, p.27) The range of policies including health signs on packaging, mass media campaigns, bans on tobacco promotion, price increases, and controls on smoking and access to tobacco were implemented (ibid, p.1). As a result, 2014-2015 data shows that 14.5 percent aged 18 years and above were daily smokers (2.6 million adults), dropped from 16 percent in 2011-12. This reduction is a continuation of the trend over the past two decades. In 2001, 22.4 percent of adults smoked daily, while 23.8% of adults smoked daily in 1995 (Australian Bureau of Statistic, 2015).

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

Smoking is one of the leading factors to death and illnesses among people around the world. Unfortunately about half of all American adults smoke. Research shows that more men smokes that women. Regarding consequences and complications of smoking, research shows that people who smokes have more chances of getting different types of cancers, such as esophageal cancer, lung cancer, throat cancer, bladders cancer, or mouth cancer. Other smoking complications are heart attack, COPD, asthma, and bronchitis. Regarding costs of tobacco use, research shows that there are many different advertisements regarding purchasing cigarettes (research shows that in recent years there were about ten billion dollars that was spend on advertising cigarettes) which

The effectiveness of tobacco tax policy solely lies on the pricing strategy implemented by tobacco companies that is, tobacco companies can decide to take up the tax increase to ensure that it does not affect consumers as an increased price, therefore subverting the the effectiveness of the tobacco tax policy (a method referred to as ‘undershifting’); passing it onto cosumers in full; or rather increasing prices on top of the tax increase (a method referred to as ‘overshifting’ that thereby increases both the effect of the tax increace and the industry’s profits) (Gilmore, Tavakoly et al. 2013).

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