Cigarette Tax Thesis

Cigarettes are one of the most purchased goods. It is also one of the most heavily taxes products that is sold in the United States. The tax will vary by state but the revenues that come from the cigarette tax is enormous. The revenue that each state brings in will also vary in the way that it is spent. The cigarette tax in every state also applies to other products other than cigarettes and cigars. Chewing tobacco (any kind of tobacco that is suitable for chewing and not smoking), snuff or other preparations of finely cut, ground, or powder tobacco, and pipe tobacco, roll-your-own smoking tobacco, and other tobacco products that are made of tobacco or are a substitute but is not a cigarette are more examples of what has the cigarette tax …show more content…
Smoking or using tobacco products does not get indulged by only one class of people who are either rich or poor. However it is said that the poor pay the bulk of cigarette taxes. “WHO studies have long found that poorer people tend to smoke more in both developing and developed countries. They spend a higher proportion of their household income on tobacco products, often ahead of their basic needs such as food health care and education” (Murphy). Citizens hold very different positions regarding the cigarette tax. People who aren’t smokers are more for the tax since the money from the taxes does go to something to benefit the state and they may believe that it will stop people from smoking and help save lives since tobacco kills thousands each year. There are also people who do smoke and are not in favor of the tax since they have to spend as little as a 17 cents to up to …show more content…
In a study performed by Kevin Callison and Robert Kaestner they observed the amount of cigarettes or tobacco products sold during a certain cigarette tax. In their findings they discovered that a $1.00 increase in cigarette taxes led to a 2% decrease in smoking participation (Callison, Kevin, and Robert Kaestner.). Since the people who use tobacco products are addicted, that explains why the cigarette tax can keep continuing to increase and citizens will keep buying the tobacco products no matter how expensive they are. The cigarette tax is also beneficial in the way that it brings in so much revenues. Millions of dollars are made just by taxing tobacco products and that money will go to things to better the state. The cigarette tax may save a life in certain cases as well. With a $4.35 tax here in New York that would have to stop a good portion of smokers and tobacco users since they may not be able to afford that extra $5.00 every time they want to buy a pack of