The majority of the tax burden is being imposed upon the consumers. The cigarette companies are being heavily taxed because they are associated with negative externalities and are relatively inelastic. The government may use the argument that it's harmful to the public's health so they're using the tax to put a halt to it's sales. The cigarette companies are taking the initial hit in terms of taxes but then turn it over to their consumers at an even higher rate.
I think it depends on the position you are in: whether you a smoker or not, whether you know someone who smokes, or someone who has died from smoking, to view it as a positive or negative tax. I don't want to say it is right or wrong to smoke or create any controversy over the issue, but I think that if it helps curb the consumption for young children and teens then it is a step in the right direction. -Shannon O'Lone
If smoking is legal, and essentially used as a way for the government to create income, than perhaps they should consider other forms of "income" to be legalized. Obviously, if marijuana is legalized, it presents another opportunity for the government to tax it, and increase their revenue. But besides marijuana, specifically, why shouldn't the government tax such harmful products? With the recession we're in, it only seems right to raise taxes on such unnecessary products and activities, and is more fair than to tax individual's hard earned income. It is the individuals prerogative if they are willing to pay more for their taxed product, but the bottom line is, this provides our government with revenue that is needed more than ever.
I would agree with Shannon. If you dont get caught up in the morality of if smoking is goog or bad you are free to form your own opinion. I feel form an economic standpoint it is a great idea. Smokers are going to smoke, regardless of the price or taxes imposed. It will allow us as a nation to create some well needed programs. I also agree in the percentage of the increase was done. A larger increase is better instead od several moderate increases over time. Ciagareetes aren't a necessity and should be treated as such.
I agree that the cig tax is good for our economy right now. Avid smokers need to smoke, so they are willing to pay for it as the price gets higher, even though the tax burden is on them. And those who have been thinking about quitting just got one more reason to. The tax will pull money into the government's revenue, and maybe help people who could never quit finally do so.
The majority of the tax burden is being imposed upon the consumers. The cigarette companies are being heavily taxed because they are associated with negative externalities and are relatively inelastic. The government may use the argument that it's harmful to the public's health so they're using the tax to put a halt to it's sales. The cigarette companies are taking the initial hit in terms of taxes but then turn it over to their consumers at an even higher rate.
ReplyDeleteI think it depends on the position you are in: whether you a smoker or not, whether you know someone who smokes, or someone who has died from smoking, to view it as a positive or negative tax. I don't want to say it is right or wrong to smoke or create any controversy over the issue, but I think that if it helps curb the consumption for young children and teens then it is a step in the right direction.
ReplyDelete-Shannon O'Lone
If smoking is legal, and essentially used as a way for the government to create income, than perhaps they should consider other forms of "income" to be legalized. Obviously, if marijuana is legalized, it presents another opportunity for the government to tax it, and increase their revenue. But besides marijuana, specifically, why shouldn't the government tax such harmful products? With the recession we're in, it only seems right to raise taxes on such unnecessary products and activities, and is more fair than to tax individual's hard earned income. It is the individuals prerogative if they are willing to pay more for their taxed product, but the bottom line is, this provides our government with revenue that is needed more than ever.
ReplyDeleteI would agree with Shannon. If you dont get caught up in the morality of if smoking is goog or bad you are free to form your own opinion. I feel form an economic standpoint it is a great idea. Smokers are going to smoke, regardless of the price or taxes imposed. It will allow us as a nation to create some well needed programs. I also agree in the percentage of the increase was done. A larger increase is better instead od several moderate increases over time. Ciagareetes aren't a necessity and should be treated as such.
ReplyDeleteI agree that the cig tax is good for our economy right now. Avid smokers need to smoke, so they are willing to pay for it as the price gets higher, even though the tax burden is on them. And those who have been thinking about quitting just got one more reason to. The tax will pull money into the government's revenue, and maybe help people who could never quit finally do so.
ReplyDelete