Cigarette Taxes to Go Up Again

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tarheeldan

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Quite happy this tax doesn't affect me personally as I've gone completely digital. I know that's not the case for everyone on this forum though.

Warning: econ geek talk - feel very free to skip

Thing is, sin taxes are go-to instruments for two reasons: they're politically viable, and they raise revenues because the products are relatively price inelastic. I don't condone the policy, just pointing out the incentive structure. On a happy note - PV's represent the closest substitute to cigarettes....the reason we're all here less affected by any tobacco tax hikes - increased elasticity of demand.
 

River

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Even when I did smoke I didn't care since I imported non-FSC MLB reds from Sweden for $20 a carton.

It's their job to rob you just like it's your job to figure out a way to keep from getting robbed.

My problem with the whole system is not that tobacco is taxed so unfairly but that the rest of the things that are bad for people are not taxed at the same rate.

Maybe people would wake up and take a closer look at the system taxing based on the morality of the product if fast food was $25 per burger and sugar and corn syrup was $50 per pound or gallon.
 

martha1014

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I still don't understand why they don't raise taxes on alcohol and caffiene which are addictive substances. Alcohol causes disease and more criminial charges. People actually die from drunk driveres. When did cigarettes ruin a family due to addiction. I still think that alcohol should be taxed higher than cigarettes. Their are no cigarette addiction centers.
 

SheerLuckHolmes

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I still don't understand why they don't raise taxes on alcohol and caffiene which are addictive substances. Alcohol causes disease and more criminial charges. People actually die from drunk driveres. When did cigarettes ruin a family due to addiction. I still think that alcohol should be taxed higher than cigarettes. Their are no cigarette addiction centers.


Percentage of the population. Cigarette smokers rarely if ever came close to the percentage of the population that drinks coffee, or those that consume alcohol. I don't know the exact %, but the politicians found early on that while there was some blowback from taxing cigs, nowhere near if they even talked about taxes on alcohol or coffee.

Also the percentage of the politicians that use alcohol and coffee is much higher and they ain't going to hurt themselves. Witness that when cigarette taxes went through the roof the taxes on cigar tobacco and Pipe tobacco were relatively unchanged. Who smokes cigarettes with beer? Who somkes Cuban Cigars with high dollar alcohol?????????
 

tarheeldan

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Yup, with SheerLuckHolmes here, probability of success is always factored in - taxing fast food or caffeine products won't fly as well as taxing cigarettes - the former can get labeled a tax on the poor, the latter isn't viewed as a real "sin" the way smoking is, and the user base is too large.

The other half, like I mentioned before though, is the dynamic effect on revenues. If you tax things that people can easily avoid (highly elastic) - you end up with so many people switching away from the product you taxed that the price hike actually DECREASES revenues.
 

skydragon

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I still don't understand why they don't raise taxes on alcohol and caffiene which are addictive substances. Alcohol causes disease and more criminial charges. People actually die from drunk driveres. When did cigarettes ruin a family due to addiction. I still think that alcohol should be taxed higher than cigarettes. Their are no cigarette addiction centers.

Alcohol is taxed at a ridiculous rate just as cigs are. I agree with taxing our politicians for every lie they have told and lets add on a tax for every dollar they have squandered and stolen from us.
 

cyberwolfrob

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They're trying and will succeed to raise them another buck in Washington State again. I just got an email telling me to contact my representative to vote yes. I wrote them back and said if we're going to keep raising and running our state on sin taxes we should legalize prostitution and tax that too.


Well 5card when you have a complete idiot like Gregoire in the office it is only going to keep on happening. Not only is she jacking up the taxes on cigs,but bottled water too!!! Not to mention the chewing gum and a few other things. She is outta her damn mind and all of us Washington natives will continue to suffer for it. :mad::mad:
 
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