Excise Taxes On Cigarette Consumption - 1971 Words

One of the most prominent crops grown in the United States is tobacco. It has been grown and cultivated in the eastern portion of the United States since before this country’s conception. As a result, it was also one of the first goods to be taxed after the conception of this country. This tax would be the first excise tax that was introduced in the United States. It came as a portion of a tax package proposed in 1974 by the Secretary of the Treasury Alexander Hamilton. Since then, taxes on tobacco have come, gone, risen, and lowered. However, the reasoning behind the taxation changed from increasing government revenue to deterring consumption with the publication of the 1964 U.S. Surgeon General’s Report on Smoking and Health. In this report, the U.S. Surgeon General established that cigarette smoking is, â€Å"a cause of lung cancer and laryngeal cancer in men, a probable cause of lung cancer in woman, and the most important cause of chronic bronchitis. The p roposed paper will investigate the relevancy of excise taxes on cigarette consumption, the act of cigarette consumption, and the most prominent method used to lower it by the U.S. government. This method called an excise tax, or informally a sin tax, is a tax issued by the government to be built into the price of a good or service to dissuade consumption. Through analyzing the data and experiments of top contributors to this subject, one will perceive how this method impacts cigarette consumption, if at all, andShow MoreRelatedHealth Risks Vs. Economics Of Tobacco Consumption1614 Words   |  7 PagesAbstract The purpose of this paper is to provide researched information on the how consumers continue to risk their health through the consumption of cigarettes regardless of hazard warnings and how the government continues to implement increased taxation to economically affect those consumers. In today’s society, there are many more consumers that are becoming health conscious compared to consumers of decades before, but there are still those that are addicted to tobacco products making it moreRead MoreEffect Of The Taxation System On China s Tobacco Industry870 Words   |  4 Pagesthe taxation system, majority of the taxes goes to the central government while revenue from some tax categories is shared with the local government. This revenue-sharing setting guarantees that the financial incentive of local government is aligned with that of the central government. Specifically in the tobacco industry, there are two levels of taxes collected ï ¿ ¼! 10! corresponding to the two stages of cigarette production, a tobacco leaf tax and a cigarette tax. Despite that tobacco leaf belongsRead MoreLoss Of Government Revenue From Tobacco Taxes791 Words   |  4 Pagestobacco taxes. According to a September 2013 report by the International Tax and Investment Center and Oxford Economics (ITIC-OE), In 2011, the Legal Domestic Sales of cigarettes fell by 80.6%, from 308 million cigarettes in 2010, to just 60 million cigarettes a year after the tax increase. Total Consumption (legal and illicit) is estimated at 317.9 million cigarettes in 2013, down 9.5% from 2012. However, only 2.4% or 7.7 million cigarettes constitute Legal Cigarettes Consumption. In 2013, excise taxRead MoreAnalysis Of Raising Taxes On Alcohol And Tobacco1055 Words   |  4 PagesProblems with Raising Taxes on Alcohol and Tobacco: One of the major issues in the United States is healthcare insurance that has attracted huge debates and concerns among the policymakers and the public. Given the severity of this issue, policymakers and other stakeholders have been involved in efforts to identify the most effective measure to provide health insurance coverage to all. These attempts have been led to the consideration of increase in taxes on alcohol and tobacco products by theRead MoreUpdate the Recurring Sin Tax Law that Was Newly Implemented by Benigno Aquino3046 Words   |  12 Pagesfield. In belief, the purpose of the imposition of excise tax on sin products is to raise revenues and discouraging the consumption of the tobacco products and alcoholic beverages. It is claimed that higher excise taxes on tobacco will make some smokers to quit, and reduce consumption of continuing smokers, and prevent others from starting (Sunley, 2009). Because the demand for cigarettes is relatively price inelastic, the expectation is that higher taxes will yield higher revenues in the near term whileRead MoreHow The Cigarette Industry Affects Society With Disease And Reduces Social Economic Welfare1142 Words   |  5 PagesThe cigarette industry is known to cause market failure. It burdens society with disease and reduces social economic welfare. These negative externalities are thought to far outweigh any economic benefits that the industry yields (Guhl Hughes n.d). To combat this, governments implement indirect taxes with the aim of reducing the number of smokers. Evidence shows th at this has been the most effective means of reducing demand for cigarettes (Cotter, Dunclop Perez 2011). In the context of the competitiveRead MoreAnalysis of an Excise Duty: the Policy of Tobacco Taxes in Germany4204 Words   |  17 PagesDaniel Strà ¶bel - Analysis of an excise duty: The policy of tobacco taxes in Germany Analysis of an excise duty The policy of tobacco taxes in Germany Master of Business Administration (MBA) Module: Assignment: Course Instructor: Economics 1/2 Dr.rer.pol. Markus Wilhelm Author: Daniel Strà ¶bel 1 Daniel Strà ¶bel - Analysis of an excise duty: The policy of tobacco taxes in Germany Executive Summary Aim of this work is to analyse tobacco tax in Germany and find out under whichRead MoreEssay about Sin Taxes5069 Words   |  21 PagesPOLS 5440 Principles and Processes of Government Budgeting | Sin Taxes, Good or Bad? | An Examination of the Use of Sin Taxes in the United States | By: Stacy Madden4/27/2012 | Executive Summary Historically sin taxes have been an effective and efficient way for the government to raise revenue. The federal government used tariffs and consumption taxes to generate almost all of its revenue in the early years of our nation. The tax structure and philosophy has evolved and changedRead MoreIntroduction. Tobacco Use Throughout The United States1254 Words   |  6 PagesWashington Duke of North Carolina hand-rolled his cigarettes and sold them at the end of the Civil War, this was the beginning of the commercial cigarette era (healthliteracy.org). In 1881, 16 years after Duke began the commercial cigarette, James Bonsack invented the cigarette-making machine with the help of Duke’s son, James. The production of Bonsack’s machine could produce about 120,000 cigarettes a day (healthliteracy.org). This was the moment when cigarette smoking became a widespread epidemic andRead MoreResearch Paper On Taxes1613 Words   |  7 Pages Are taxes an effective method of changing health behavior? Anette Hooper November 11, 2017 Abstract Policymakers have identified an opportunity to modify individual negative health behaviors by increasing the financial burden of those behaviors through the imposition of sales tax on consumer products deemed harmful to the public. Research supports the ability of health taxes to encourage consumer transition from the precontemplation stage to action towards cessation