CONCORD, N.H. — Bucking a national trend of raising cigarette taxes, New Hampshire, New Jersey and Rhode Island have considered reducing theirs, hoping to draw smokers from other states and increase revenue.
Supporters argue reducing the tax by a dime would make New Hampshire more competitive with Maine, Vermont and Massachusetts, while opponents say that even if the state experienced higher sales as a result it still would lose millions of dollars in revenue.
It's very unusual for states to lower the tax, University of Illinois at Chicago economics professor Frank Chaloupka says. The increase in sales isn't enough to offset the drop in state tax revenue, he says.
Instead of lowering the tax, states have enacted 100 increases over the past decade, he says.
http://www.huffingtonpost.com/2011/03/1 … 37579.html
well this is a serious social,economic and health issue....making more money from the addictions and health of its' citizens..the high cigarette taxes were put in place to discourage people from smoking in the first place...
"The increase in sales isn't enough to offset the drop in state tax revenue, he says."
He sounds pretty sure of himself! You wouldn't believe how much of the tobacco in the UK is 'contraband', in other words, been smuggled over in lorries from Europe.
If they cut it enough, then lorries would pile into those states for cheap cigs. In fact, in the US you already buy from the Indian reserves at a third of the price that you would in a US store.
Sounds like sound business to me, I wish that we weren't in the EU, so that we would have more license to develop export markets like this.
Whilst I appreciate your angle, e.g. health, if you prevent the States from setting their own taxes then you are effectively bending over and allowing your government to bugger you all.
New Zealand taxes cigarettes and alcohol to the hilt!
When I lived there ,and smoked ,it was not uncomon to hear expletives that rythmed with truck frequently!
Every time a new budget was announced Ciggie and booze taxes were slammed on.
However those taxes made Hospital free and Doctor visits affordable, children under 6 yrs old -Free, Free dental for all student unitl age 18yrs,so the long and the short of it, affordable healthcare for all.
The alternative here in the states is Alcohol is dirt cheap,same for Tobacco ,but healthcare ,well forget about it, unless you got money to burn its not going to happen
It is said in the UK that tax revenues from cigarettes far exceed the cost of treating cigarette related illnesses.
And the same probably applies to Alcohol too.
Yep ,and another initative that was applied (not sure if the programme is still running) was all medical/police/rescue/ working on deemed high accident related accidents were eligible for bonuses, which came from taxes...
User pays scenerio
Governent sure as hell dont wanna lose a penny over increased medical/police prescence over any drug. However with that thought ,leads me to understand better why the US, dont mind people being dependant on drugs be it from the many corner store 'chainstores' or the man in the white coat.
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