Estimating cigarette-tax revenue

Chiles, Ted W.; Sollars, David L.

doi:10.1007/bf02920027

Cited by 4 publications

(1 citation statement)

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“…Assume next that it is left to the states to administer such a tax system (SSET). If some states were to resist raising cigarette excise taxes in the form of the SSET or were to resist raising the cigarette excise tax in the same way and to the same extent, due either to the influence of tobacco producers, tobacco lobbyists, and/or tobacco growers organizations and/or due to some other reason, whereas other states raised the taxes by fully adopting the optimal SSET, the benefits for the policy would be less extensive, particularly in those cases where cigarette purchases could be made on a large scale across state lines without significant transaction costs [CHILES -SOLLARS, 1993;LOVENHEIM, 2008]. Interestingly, on this very issue, Lovenheim [2008, p. 7] estimates that 13-25 percent of consumers purchase cigarettes in border localities.…”

Section: A Nicotine and Tar Based Cigarette Taxmentioning

confidence: 99%

A Preliminary Contemporary Panel Data Analysis of the Consumption Impact of Cigarette Taxation

Cebula

2010

Journal of Public Finance and Public Choice

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The adverse health effects from cigarette smoking account for an estimated 400,000 deaths annually in the U.S. Given this circumstance, the present study has two objectives. First, using a panel data set for a very recent time frame, it seeks to investigate the impact of federal plus state cigarette excise taxes (along with the influence of other factors) on the aggregate consumption of cigarettes. The study adopts a five-year state-level panel data series spanning the period 2002 through 2006. Consistent with certain previous studies, the estimates in this study find that the higher the cigarette excise tax, the lower the aggregate volume of cigarettes consumed. However, this outcome does not address the practical problem of the substitution of high nicotine cigarettes for low nicotine cigarettes in light of a significant cigarette tax hike. This circumstance leads to the second objective of this study, namely, to formally propose a general form/template for a cigarette excise tax that is tied directly to each cigarette brand’s nicotine and tar content.

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Section: A Nicotine and Tar Based Cigarette Taxmentioning

confidence: 99%