"However they satisfy their nicotine cravings, tobacco users are facing a big hit as the single largest federal tobacco tax increase ever takes effect Wednesday.Tobacco companies and public health advocates, longtime foes in the nicotine battles, are trying to turn the situation to their advantage. The major cigarette makers raised prices a couple of weeks ago, partly to offset any drop in profits once the per-pack tax climbs from 39 cents to $1.01.Medical groups see a tax increase right in the middle of a recession as a great incentive to help persuade smokers to quit."
"The Centers for Disease Control and Prevention says cigarette smoking results in an estimated 443,000 premature deaths each year, and costs the economy $193 billion in health care expenses and lost time from work. Smoking is a major contributor to heart disease, cancer and lung disease."
So this is curiousity on my part. I am wondering how everyone feels about the tobacco tax. Studies have shown it has lead to decreased smoking and the funds usually go to help state governments. I think this increase is going to fund Children's Health insurance funds. So, is this a good idea to increase the tax or bad? I just want to know what the hardcore conservatives think about this.
Subscribe to:
Post Comments (Atom)
2 comments:
If I were a hardcore smoker, perhaps I'd be pretty unhappy about this tax. But I doubt that an extra $0.62 per pack will make a significant dent in the bigger picture $193 billion per year in tobacco-related health care costs. I don't doubt that some people will use this tax as an excuse to quit smoking, or to at least cut back, but for the majority, cigarette demand is pretty darn inelastic. Or in other words, it would take a lot more than an extra 62 cents before most people would significantly cut back.
I think if behavior has a public cost associated with it, then taxes that support that cost make a lot of sense - similar to toll roads. However, that isn't how the cigarette tax is applied (children's health care doesn't count), and instead we apply "sin" taxes that are used for any number of things. Personally, I don't like the government taxing "sins" since I prefer the government stay out of defining moral behavior. Not sure that is an answer, but I think the tax is okay, but not how it is currently applied.
Post a Comment