The Effects of Cigarette Excise Taxation

What is probably the fastest growth in taxation in the United States, cigarette excise taxes levied by both the Federal and state governments have shown a distinctive impact relative to supply and demand, equilibrium of price and quantity, and elasticity of the product. The intent of the tax is twofold; to reduce the rate of cigarette usage and to increase revenues for healthcare programs related to the effects of cigarette smoking, such as cardiopulmonary disease, respiratory disease, and illness related to second-hand smoke.
Cigarette excise taxes vary greatly from state to state, with rates as of 2004, New Jersey levied the highest rate ($2.05 per pack) while Virginia had the lowest rate (2.5 cents per pack) (Goel and Nelson, 2006). However significant increases have been realized with cigarette excise tax even in major tobacco producing states such as Kentucky, where historically they have been extremely low due to the economic......

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Title: The Effects Of Cigarette Taxation
Approximate Word Count: 747
Approximate Pages: 3 (250 words per double-spaced page)

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