cigarette taxes introduction basic review term
Research from Term Paper:
.. ” (Fleenor, nd) it really is related it did not consider long for this to propagate into other U. S. states with trucks all over the United States staying hijacked and robbed with their cigarette freight. The following tables lists the state excise tax rates upon cigarettes for January you, 2007.
Point out Excise Taxes Rates in Cigarettes (January 1, 2007
TAX LEVEL per pack)
RANK
EXPRESS
TAX CHARGE
CENT EVERY PACK
The state of alabama (1)
Nebraska
Alaska (3)
Nevada
Illinois
New Hampshire
Arkansas
Nj
California
Fresh Mexico
The state of colorado
New York (1)
Connecticut
North Carolina
Delaware
North Dakota
Fl
Ohio
Atlanta
Oklahoma
Hawaii (3)
Oregon
Idaho
Philadelphia
Illinois (1)
Rhode Area
Indiana
Sc
Iowa
South Dakota
Kansas
Tennessee (1) (2)
Kentucky (2)
The state of texas
Louisiana
Ut
Maine
Vermont
Maryland
Va (1)
Ma
Washington
Michigan
West Va
Minnesota (4)
Wisconsin
Mississippi
Wyoming
Missouri (1)
Filth. Of Columbia
Montana
U. S. Median
Source: (http://www.taxadmin.org/FTA/rate/cigarett.html)
III. CIGARETTE TAX: A REGRESSIVE Kind of REVENUE
Babington (2007) inside the report titled: “Raising Cigarette Tax to Fund Kids Health Bill Might Hit Poor the Hardest” states that: “Congressional Democrats have picked an not likely source to cover the bulk of their proposed $35 billion embrace children’s health coverage: people with fairly little funds and education. ” (Babington, 2007) This proposed program expansion would be funded using a 156% embrace the national tax in cigarette acquisitions. Since even more low-income persons smoke than do the even more affluent in america this would result in a “regressive form of revenue. ” (Babington, 2007) Kingston, a representative from the Express of Atlanta was mentioned as having stated that in order “to get enough money to cover this, it will require twenty-two million new smokers. inches (Babington, 2007) This was just lately vetoed by President Rose bush. As Nyc discovered “highly sophisticated bootlegging operations are often run by organized criminal offenses. ” (Fleenor, 2003) in fact , “the great cigarette smuggling in the Combined Stats tightly parallels the experience of New York City. inches (Fleenor, 2003) in the years of the 1940’s and 50s taxes in cigarette acquisitions were modest across the Usa and bootlegging of cigarettes was on a very small scale. However , in the 1950’s “as declares responded to developing concerns about smoking and health by simply substantially raising tax costs. During 1965 alone, twenty two states hiked their cigs taxes hitting 13 pennies per pack – nearly three times the extent two decades previously, on continuous dollar terms. ” (Fleenor, 2003) These types of high amounts of tax are stated to have set off large amounts of bootlegging in cigarettes and by the mid-1970’s “ACIR estimated that 14 declares, containing about 50 % the U. S. populace, had critical problems with cigarette bootlegging. inches (Fleenor, 2003) the problems will be related to be of such a severe and ongoing characteristics in Nyc, that work on the part of law enforcement to deal with bootlegging of cigarettes had been a total failure and entirely ineffective.
OVERVIEW and REALIZATION
Not only will the kids health care bill have already been a regressive form of income, the fact is, that anytime excessive taxes are imposed in any one product the situation is established for profit to be recognized through bootlegging of that merchandise. Just as confirmed in the experience of New York City, often there is some type of community response to heavy tax imposition on companies goods which have the potential to make a very complex problem intended for policymakers and law enforcement alike and that has a negative effect upon businesses and the overall economy.
Bibliography
Babington, Charles (2007) Raising Cigarette Tax to finance Kids Well being Bill Will Hit Poor the Hardest. 40 Sept 3 years ago. seattlepi. com Online offered by http://seattlepi.nwsource.com/national/333772_cigarettetax01.html
Cigarette Sales Fall After Tax Kicks in (2006) the News Observer 22 Nov 06\. Online available at http://www.newsobserver.com/102/story/513439.html
Fleenor, Patrick (2003) Cigarette Taxation, Black Market segments, and Offense: Lessons from New York’s 50-Year Dropping Battle. Insurance plan Analysis Number 489 six Feb the year 2003. Online offered by http://www.cato.org/pubs/pas/pa468.pdf
McMahon, Patrick (2002) States Consider Cigarette Duty Hike. 13
