Study Says State Cigarette Taxes Deter Smoking

Reuters ^ | July 23, 2002

[JediGirl]

DENVER (Reuters) - Tax hikes on cigarettes imposed recently by states and cities across the United States is not only helping their coffers but is proving a strong deterrent to smoking, an anti-tobacco group said on Monday.

"In several states, consumption declined 20 percent or more and new revenues in the millions of dollars were still realized," the Smokeless States National Tobacco Policy Initiative said in a study to be presented at the National Conference of State Legislatures annual meeting in Denver.

New York City led the way with a $1.42 tax hike that put cigarettes at $7, but less drastic increases also produce healthy results, the groups found in its study.

An increase in the price of cigarettes of only 10 percent reduces cigarette consumption among teens by 7 percent, the study said. The anti-tobacco group argues that higher taxes will keep teens from smoking, resulting in fewer deaths from tobacco related illnesses and reductions in future healthcare costs.

Four states passed higher cigarette taxes last year, and 16 states plus Puerto Rico have increased their tax since January of this year.

The anti-tobacco group is a program established by the American Medical Association and the Robert Wood Johnson Foundation.

State lawmakers will also be told that crossing a state line for a cheaper pack of cigarettes only accounts for one percent of all smuggling and that two-thirds of all cigarettes sold in the United States are sold as single packs.

[Prodigal Son]

Does this also mean that income taxes deter productivity?

[GailA]

The 20% drop represents those that have moved to less heavily taxed tobacco products or to the internet, or to other States for their cigs..Hubby switched to Swisher Sweet Lights little cigars three years ago..20 cig sized cigars with filters, about $1.05-$1.69 per pack. About half the cost of a carton of cigs.

[Maelstrom]

indisputably

[Free the USA]

Index Bump

[Great Dane]

LOL, do they not know that we find alteratives to TAXES.

Boy these people are stupid.

[Tumbleweed_Connection]

The most overlooked factor is the medical reprocussions of smoking. Consider big government's definition of the percentage of smokers who die of cancer (some 30%) and realize this sector includes any form of the disease (liver, cervical, bone, prostate, skin...) which may not have any relationship to the habit. Those who do in fact die from cancer which is actually related to smoking are well below 10% - consider the tab the remainder of you are picking-up! And most of them live beyond 60 years.

Even for those in that small group who are inducing carcinogenic effects, consider other health problems they might have, related medications which are irritating, and the soothing effects of smoking - it's often in their best interest to continue the habit.

Big government is simply lying.

[Prodigal Son]

Aye, and these same dems claim that to jump start the economy we should raise income taxes. They play a double game here and I never understand why the media don't call 'em on it sometime just for fun. They say on the one hand that raising taxes here discourages an unwanted behaviour and on the other that it doesn't. Which is it? Going by their logic, raising cigarette taxes should cause more people to start smoking ;-)

[gcruse]

Big government is simply lying.

No, they're not.  There will always be
a decrease in activity as it becomes higher
taxed.  As prices get higher and higher,
though, until only one user is left standing,
the price for a pack of cigarettes would
theoretically have to top out at around
a million bucks.  In other words, there
are limits, but we aren't there yet.

[freeforall]

Also promotes break and enter to retail stores and smuggling for organized crime.

[freeforall]

See post #10.

[Tumbleweed_Connection]

"the medical reprocussions of smoking"... Big government is simply lying."

No, they're not.

Yes they are.

[Pagey]

It seems to me that if the Gov't would exert a little (ALOT of) discipline in their spending, The prices wouldn't be going higher and higher.It is the spending by elected officials,not the smoking that is raising the taxes on everything in the USA. Cigarettes just happen to be included and are a simple target for Elected Officials.It's not that difficult a situation to understand.

[spoiler2]

The second paragraph should have stated that LEGAL consumption declined 20 percent or more.....

I'm betting that the actual number of cigarettes consumed, never actually fell by that percentage. The anti-smoking group has absolutely no way of measuring the amount of ILLEGAL cigarette consumption going on, but rest assured, it's on the rise.

[PeterPrinciple]

decrease in TAXED activity is more likely.

[SheLion]

There will always be a decrease in activity as it becomes higher taxed. As prices get higher and higher.

There is NO decrease in activity. Just ask all the conservative smokers in here. Like I have said: we buy over the NET, or the Reservations, roll our own, or go across state lines, which scares me to death. "I" would be the one to get caught.

I knew the minute they raised the taxes, and the smokers were no longer paying into the state coffers, someone would say smokers have decreased.

BET ME!

[SheLion]

ILLEGAL cigarette consumption going on, but rest assured, it's on the rise.

ILLEGAL? I roll a carton of cigarettes for under $8.00. It's perfectly legal.

Start Rolling Your Own

[gcruse]

There is NO decrease in activity.
Just ask all the conservative smokers in here.

If that's true for everybody, it is a disgusting
admission.  Quitting smoking is hard; it's
not impossible.  But f you're willing to break
the law or pay extremely high prices to continue
the habit...well, I have a War on Drugs I
want you to help me overthrow.  Are we
libertarians yet? ;=)

[spoiler2]

Of course rolling your own is legal, but I was referring to all those creatively challenged folks who simply get them in boxes, without paying taxes.

Also, I'm totally in favor of both methods!

[SheLion]

Also, I'm totally in favor of both methods!

hehe! Well, if I was doing it illegally, I would be the one to get caught. You know Murphy's Law. Well, Murphy HATES me. :)