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Cigarette taxes are overwhelmingly paid by the poor, and impact them disproportionately. They do not have a significant impact on the smoking rates (people who
by strawberrypuree 6y ago
Cigarette taxes are overwhelmingly paid by the poor, and impact them disproportionately. They do not have a significant impact on the smoking rates (people who would have quit due to the price already have) and there’s no data on how that tax money is spent to offset the externalities.
Some info: https://priceonomics.com/how-cigarettes-tax-the-poor/ https://priceonomics.com/how-cigarettes-tax-the-poor/
TL;DR cigarette taxes feel fair to non smokers because it appears to discourage a habit with bad outcomes, but economically they aren’t effective.
- ytwySXpMbS 6y agoYes, perhaps raising the taxes wouldn't stop more people, but lowering the taxes may encourage more people. One could imagine that having no taxes may make it easier for teenagers to start smoking, for instance.