Tuesday, November 19, 2013

What's The Federal Cigarette Tax Rate

Cigarette taxes raise the price of cigarettes.


As of 2010, the federal cigarette tax rate is $1.01 per pack. President Obama signed a 62-cent increase into law on February 4, 2009. In addition to the federal cigarette tax, states also charge taxes on cigarettes.


Purpose


Cigarette taxes raise the price of cigarettes, which reduces consumer demand. Since smoking is harmful to people's health, reducing the number of smokers benefits society. This type of tax is sometimes called a "sin tax" or Pigovian tax (named after economist Arthur Pigou). In addition, taxes raise revenue, which can then be invested in health care or smoking-prevention programs.


Effects


According to the Campaign for Tobacco-Free Kids, the 2009 increase in the federal cigarette tax rate will prevent approximately 248,000 smoking-affected births over the next five years and will also save $44.5 billion in long-term heath care costs.


Criticism


Opponents of increasing the federal cigarette tax rate contend that cigarette taxes disproportionately harm the poor, since lower-income families spend more on tobacco. In addition, some people believe that citizens should be free to engage in activities that harm their own health, as long as others are not affected.


Smoking and Health


Nearly one of every five deaths in the United States is caused by smoking cigarettes. According to the Centers for Disease Control and Prevention, smoking drastically increases your risk of developing cancer, coronary heart disease and stroke. In addition, smoking increases the risk of infertility, low birth weight and Sudden Infant Death Syndrome (SIDS).









Related posts



    No organ of the human body goes untouched by regular inhaling of cigarette smoke. Chief among pollutants introduced into the body and lungs by smoking cigarettes is tar, a substance related to sev...
    The electronic cigarette is designed to look, taste and feel as much like a regular cigarette as possible.The electronic cigarette is a substitute for a normal cigarette, used by people who want t...
    Clove cigarettes pose just as many health risks as tobacco cigarettes.Clove cigarettes are a mixture of one-third dried cloves and two-thirds tobacco. The Council on Scientific Affairs classifies...
    Electronic cigarettes have not been approved by the World Health Organization.Electronic cigarettes are small, battery-powered gadgets that resemble tobacco cigarettes. They deliver nicotine to th...
    Smokeless cigarettes aim to help people battle tobacco addiction.It can be very difficult for those addicted to tobacco to quit smoking. Smokeless cigarettes are battery-operated devices that prod...