Counterpoint .. the higher the tax, the more quit .. thus, the Governmental need for the cash is really not true .. in fact, if they truly wanted more cash, they would lower the tax and promote smoking .. as well, it is an unacceptable burdon on the Heath Care system as it is a voluntary activity .. proven over many years to be a heath hazard ..
The more I think about this the less I agree. According to CDC statistics the percentage of adult smokers has held basically steady from 2004-2009 at ~20.5%. Since 1997 the total number of smokers only dropped a whopping...... 4%
Now I'm unsure of just how MUCH the taxes have increased but I think we all know they HAVE many times over both of these periods.
Recently a lot of people started switching to "roll-your-own" tobacco, which lead to the PACT act* which, among other things, started taxing "RYO" tobacco "at a closer level too traditional cigarettes". So the stats after '09 would be interesting to see.
So no, I don't think higher taxes "really" makes more people quit. I might make them TRY to quit, but they relapse. Or it might make them look for cheaper alternatives such as Roll-Your-Own, switching to a cheaper brand, smoking a pipe, smoking "little cigars w/filters" (*wink-wink*) or even e-cigarettes.
I think the government knows they have a captive ~20% of the population that they can tax at will and at the same time demonize so no one will see this as an abuse. When cigarette smokers do finally hit the point where they can't afford it and move to something else, the government just taxes that. And those people are often removed from the statistics on cigarette smokers, even though they really still are, and are still being taxed accordingly. I'm going to guess that the actual percentage of "tobacco product users", including US, probably causes that 4% decline somewhat, maybe substantially.
Has cigarette consumption gone down? Yes. Is it directly related to increased taxes? Once it hit 20% of the population not really.
http://www.cdc.gov/nchs/data/nhis/earlyrelease/earlyrelease201006.pdf#page=52 <--- PDF warning.