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Cigarette Taxes a Highly Successful

Today, each country implements the quotas it finds most suitable, leading as such to major fluctuations in the taxes, their percentage in the price and the final retail price.

The federal authorities generally explain the high cigarette taxes as a means of reducing the consumption of cigarette, with the ultimate aim of reducing the number of smokers and protecting the health of the individuals. Nevertheless, fact remains that the fares carry a major economic function — that of gathering money for the state budget. This positive effect on the federal budget has however yet to be observed, as history has shown us that increased taxes reduce demand, rather than create additional income. The situation with the promoted social impact is also blurred, as I believe is the entire debate over smoking and its economic and social implications.

References:

Cordes, J.J., Ebel, R.D., Gravelle, 2005, Encyclopedia of Taxation and Tax Policy, 2nd Edition, The Urban Institute

Goldman, B., 1998, Meet Joe Black Screenplay, Internet Movie Database, http://www.imsdb.com/scripts/Meet-Joe-Black.htmlGravelle last accessed on November 18, 2009

Williams, J., September 17, 2008, Sibelius Cigarette Tax Proposal Ignores Economic Realities, The Kansas City Kansas, http://www.nocigtax.com/upload/file/16/20080917-kansascitykansan-editorial.pdf last accessed on November 18, 2009

2008, EU Cigarettes Price and Tax Breakdown — July 2008, Tobacco Manufacturers Association, http://www.the-tma.org.uk/page.aspx?page_id=35 last accessed on November 18, 2009

2008, Europe: Cigarette Tax Increase, ProCor, http://www.procor.org/prevention/prevention_show.htm?doc_id=696694 last accessed.

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