The Impact of Raising Taxes on essays

The Impact of Raising Taxes on essays The Advantages and Disadvantages of Increasing Cigarette Tax Rate 1 The Effect of Increasing Tax on US Cigarette 2 - Demand 3 - Supply 4 Government and Cigarette Tax 5 Own price elastic of Tobacco 7 Cigarette advertising and promotion 9 What is the right level of tax? 12 Cigarette industry and Oligopoly 12 References 14 The Impact of Raising Taxes on Cigarette This paper is primarily focused on the impact of price increases on cigarette that have a positive effect on the U.S. economics. According to Federation of Tax Administrators (FTD) 2002, there is an increasing excise tax on US cigarette in many states, which affect directly to consumers behavior and supplier. Many critics believe that the U.S. government may address the effectiveness of the excise taxes as a regulatory instrument. On the other hand, the government may use excise taxation by increasing tax rate of US cigarette as a tool for gaining more revenues and saving cost of financial part of medicates and national health care. A significant impact of proposed cigarette price increases is a big economic issue that will impact on every side: consumers, suppliers, and the government. One of economists name, Eric Lindblom, from the National Center for Tobacco indicated that an increases cigarette tax, it would directly affect to the price of cigarette. In other words, the price of cigarette will increase causing the impact in the supply and demand of cigarette in the market. The Advantages and Disadvantages of Increasing Cigarette Tax Rate State governments generate revenues. (www.nytimes.com/2002) Every state that has significantly increased its cigarette tax has ...