Executive Summary
Increasing state cigarette excise tax is an effective intervention to prevent cigarette use and reduce smoking prevalence. High cigarette tax rate encourages people to quit cigarette use, particularly among youth and low income smokers. Raising tax rate improves the economy by increasing government tax revenue and reducing healthcare cost. It also benefits public health since it lowers the risk for many smoking related diseases, increases the quality of life and extends life expectancy.
Introduction
Cigarette tax rate has been used as a government policy to control tobacco in different countries. It is acceptable to increase cigarette price through higher taxes. However, tobacco is an addictive good. Even though people know …show more content…
The study shows that $1 increased in a pack of cigarette would reduce 41% of smoking-attributable death in adolescents. It reduces 26% population of adolescent smokers and saves 108,466 lives in each cohort of people aged 18. This strongly supports the increasing tax rate can reduce smoking prevalence and save the life for youth. Tax increases lead to a higher price on cigarettes, then it also affects the demand on cigarettes. There is a negative relationship between youth smoking participation and tax increased (Carpenter&Cook 2008). $1.00 increased in cigarette tax implies a change of 2.7% smoking participation rate at the state level. And the prevalence of frequent smoking reduced by 2.4%. The consumption on youth smokers drops down significantly because they are more sensitive to price change (Franz 2002). The result also shows the positive effects of increasing cigarette prices on older smoking behavior. There is another study also investigated how older adult smokers respond to the higher cigarette tax. The groups of individuals are all between 45 and 59 years old. The study concludes it reduces 6% of daily smokers in this age group as cigarette tax increased by $1. Especially for those less educated and low income individuals, they are more sensitive for higher tax which results in much more cigarette use reduction (DeCicca&MeLeod
Increasing state cigarette excise tax is an effective intervention to prevent cigarette use and reduce smoking prevalence. High cigarette tax rate encourages people to quit cigarette use, particularly among youth and low income smokers. Raising tax rate improves the economy by increasing government tax revenue and reducing healthcare cost. It also benefits public health since it lowers the risk for many smoking related diseases, increases the quality of life and extends life expectancy.
Introduction
Cigarette tax rate has been used as a government policy to control tobacco in different countries. It is acceptable to increase cigarette price through higher taxes. However, tobacco is an addictive good. Even though people know …show more content…
The study shows that $1 increased in a pack of cigarette would reduce 41% of smoking-attributable death in adolescents. It reduces 26% population of adolescent smokers and saves 108,466 lives in each cohort of people aged 18. This strongly supports the increasing tax rate can reduce smoking prevalence and save the life for youth. Tax increases lead to a higher price on cigarettes, then it also affects the demand on cigarettes. There is a negative relationship between youth smoking participation and tax increased (Carpenter&Cook 2008). $1.00 increased in cigarette tax implies a change of 2.7% smoking participation rate at the state level. And the prevalence of frequent smoking reduced by 2.4%. The consumption on youth smokers drops down significantly because they are more sensitive to price change (Franz 2002). The result also shows the positive effects of increasing cigarette prices on older smoking behavior. There is another study also investigated how older adult smokers respond to the higher cigarette tax. The groups of individuals are all between 45 and 59 years old. The study concludes it reduces 6% of daily smokers in this age group as cigarette tax increased by $1. Especially for those less educated and low income individuals, they are more sensitive for higher tax which results in much more cigarette use reduction (DeCicca&MeLeod