The Tobacco Industry And Taxation Essay

810 words - 3 pages

The tobacco industry is one industry, which has made a lot of money over the years from consumers. Various taxes have been placed on tobacco products in hopes of decreasing the number of people that smoke. There have been many campaigns, which have been started to try to get smokers to quit smoking. However, the high taxes that are placed on the tobacco products by the government seem to be one of the most common reasons people stop smoking. Will taxing these products be what makes the tobacco industry fail? A majority of our nation has let it be known that they favor the higher prices that have been placed on tobacco products; however, these prices are not harming the sellers as much as the buyers.The sales of cigarettes have a state and federal taxes placed on them. The sellers of cigarettes try to place most of these costs on the consumers, so they can make as much money as possible. The consumers still buy the tobacco products, so the have no choice except to pay the high prices that is being charged for these products. A substitute has not been made that is strong enough to replace these products; also, there is not an alternative to nicotine. There are a large number of tobacco product producers, and they have to endure these taxes also, as the consumers pay more each year for the products that are causing them harm.Since the governments has imposed the higher taxes on tobacco products, the consumers are paying prices that are higher, there is some suffering that as been placed on the tobacco industry. Being able to attract future smokers has become a problem with the higher taxes that have been placed on these products. With the use of the tax to support the healthcare of children, the higher prices have become more wanted by the public. The seventy-five cent increase that has been agreed upon by most of the country will aid in preventing 2.3 million children from starting the smoking habit (Dueffert, 2007). In the United States, the industry is starting to decline; however, the global market is strong in countries that are poorer, which are starting to be some of the biggest users of tobacco products. Asia has more deaths that are related to tobacco use than other countries in the world (Snuffed Out, 2007).The higher taxes that were placed on tobacco in the U.S. has caused many smokers to stop smoking, this has also caused the number of products being...

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