A New Form of Federal or State-level Cigarette Excise Taxation in the U.S.

Richard Cebula

Abstract


This paper provides a template for the taxation of cigarettes that not only will yield a rich source of government revenue but also has the potential to improve public health. The tax formulae provided here expressly tax the nicotine and tar content of any brand of cigarette. This acts to discourage the substitution of higher nicotine brands for lower nicotine brands when higher cigarette taxation is imposed.


Full Text: PDF DOI: 10.5539/ijef.v4n2p16

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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