Benefits of Increased Cigarette Tax
With the increased politicization of the united states, there has been a renewed emphasis on discussions of taxes and public health. Americans have high demands on lowering taxes, but once it comes to taxes on cigarettes opinions vary. There have been many arguments when it comes to the tax on cigarettes stating that the tax would make the American economy suffer with lowering the demand on cigarettes due to the high prices, making the poor suffer due to use of smoking to decrease the stress level, and the decrease of revenue. Does the cigarette tax really hurt or benefit the United States Economy? The increase on the cigarette tax would not only benefit the united states economy by increasing revenue but …show more content…
Today Americans always look for the best prices of everything, looking to get every bang for their buck. While some economists believe that the increase on cigarette tax won’t affect the economy, evidence proves otherwise. The average cost of a pack of cigarettes around the united states varies between $5.50, up to $12.85 in others such as New York. Reasoning behind these high costs? Cigarette Tax. Even with these ghastly prices Americans still purchased cigarettes. Statistics estimate the total cost of purchasing cigarettes over 20 years stating that Americans will spend over $38,000 which in some cases is enough to put a down payment on a house, brand new car, and used to pay off some debts. This cost doesn’t include all the money spent on health care where the cost of yearly treatment for lung cancer starts at 60 …show more content…
A study done in Turkey shows the increase in cigarette price in turkey statistically decrease the consumption of cigarettes. The increase of taxes from 2008 to 2012 shows that the smoking prevalence decreased while the price of cigarettes increased. A study in Korea also shows the correlation of smoking prevalence in comparison to the price. Korea had one of the lowest cost of cigarettes but decided to increase the tax gradually to help fund education and other needs the government needed funding for. Korea first started to raise the tax gradually with small intervals up until the steep increase in 2015. This movement rose outrage and controversy within Korea with its citizens worrying about the real reason of the tax increase. Most worried that Korean government was more focused on raising the tax and taking money from its citizens rather than truly worrying about the health of its citizens. Even with the controversy and worry some from its citizens the Korean government kept up with the taxes on cigarettes with intervals of increasing and decreasing the tax. With the intervals on the increase and decrease of the tax, the data obtained shows the negative correlation with the price of cigarettes and the consumption. The increase in prices of cigarettes decreases the consumption of
With the increased politicization of the united states, there has been a renewed emphasis on discussions of taxes and public health. Americans have high demands on lowering taxes, but once it comes to taxes on cigarettes opinions vary. There have been many arguments when it comes to the tax on cigarettes stating that the tax would make the American economy suffer with lowering the demand on cigarettes due to the high prices, making the poor suffer due to use of smoking to decrease the stress level, and the decrease of revenue. Does the cigarette tax really hurt or benefit the United States Economy? The increase on the cigarette tax would not only benefit the united states economy by increasing revenue but …show more content…
Today Americans always look for the best prices of everything, looking to get every bang for their buck. While some economists believe that the increase on cigarette tax won’t affect the economy, evidence proves otherwise. The average cost of a pack of cigarettes around the united states varies between $5.50, up to $12.85 in others such as New York. Reasoning behind these high costs? Cigarette Tax. Even with these ghastly prices Americans still purchased cigarettes. Statistics estimate the total cost of purchasing cigarettes over 20 years stating that Americans will spend over $38,000 which in some cases is enough to put a down payment on a house, brand new car, and used to pay off some debts. This cost doesn’t include all the money spent on health care where the cost of yearly treatment for lung cancer starts at 60 …show more content…
A study done in Turkey shows the increase in cigarette price in turkey statistically decrease the consumption of cigarettes. The increase of taxes from 2008 to 2012 shows that the smoking prevalence decreased while the price of cigarettes increased. A study in Korea also shows the correlation of smoking prevalence in comparison to the price. Korea had one of the lowest cost of cigarettes but decided to increase the tax gradually to help fund education and other needs the government needed funding for. Korea first started to raise the tax gradually with small intervals up until the steep increase in 2015. This movement rose outrage and controversy within Korea with its citizens worrying about the real reason of the tax increase. Most worried that Korean government was more focused on raising the tax and taking money from its citizens rather than truly worrying about the health of its citizens. Even with the controversy and worry some from its citizens the Korean government kept up with the taxes on cigarettes with intervals of increasing and decreasing the tax. With the intervals on the increase and decrease of the tax, the data obtained shows the negative correlation with the price of cigarettes and the consumption. The increase in prices of cigarettes decreases the consumption of