Smoking Kills Essay

421 WordsJul 15, 20132 Pages
Jason Iskalis December 2, 2010 Econ paper Smoking Kills article Tobacco use has been a serious problem for many years and is continuing to come up in newspapers constantly. The downsides of tobacco are being taught in school but thousands of kids are still smoking their first cigarette every day and it usually isn’t their last. Legislators and other concerned people are aware that teaching the kids is not getting to them so they have been attempting to decrease tobacco consumption with increased tobacco taxes. Kentucky, being a leading tobacco producing state doesn’t have taxes as high as some other state when it comes to tobacco products. States such as Illinois where I am from are constantly increasing the tax on tobacco. Tobacco prices are already quite high in Illinois and they are talking about increasing the tax by another dollar! The tax increase would shift the supply curve to the left and up by one. The affect of this extra dollar tax on tobacco would increase the price and decrease the quantity. If you’re a smoker this doesn’t make your day because you’re just pulling more money out of your wallet just to burn it right away. But on the other side if you’re the legislators or parents trying to stop people from smoking then it works just perfect. But then again since the demand for tobacco is relatively inelastic it doesn’t have that much affect on the consumption. As far as who bears the burden of the tobacco tax increase, most likely it will be split between the consumer and the producer. Nicotine is an addictive drug that tons of people feel as if they cannot go without. So in reality you can raise and raise taxes but people will still buy cigarettes. Raising the tax will eliminate some of the smokers that aren’t regular users but the true smokers will figure out a way to buy tobacco. Also it stated in the article how in 2012 they will introduce new

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