Taxation

Smokers every last(predicate) everyplace New York be frustrated by the rise in monetary value for a practice bundling of cig arttes. Smokers anyowing now give $2.75 per pack in measure incomees compared to a $1.50 that it was merely two weeks before (2008, Fox News). New York has the highest taxes for cigarettes entirely over the nation. What is a smoker to do when cigarettes cost roughly $10 a pack? Some might quit. With the young tax increase over 140,000 smokers lead quit ingest (2008, Newport Television). However, others leave behind rely on buying grim cigarettes or smuggled securities industryplace cigarettes. Some turn over that thither is no conundrum with buying cigarettes illegally (cigarettes that are non taxed). What the governing does non realize is that smokers who have had the habit for numerous amounts of years go out non quit smoking. They will do anything to find them cheaper. This makes all convenient stores, cigaret te trucks, and cigarette factories easy tar recrudesces for black market sellers. In New York it is literally more(prenominal) profitable to commandeer a cigarette delivery truck than an armored truck. (2008, Fleenor). Consumers are not the only ones affected by the rise of taxes on cigarettes the sellers are affected as well. Many people would not believe that the producers of products pay taxes on their products as well, especially when the price in taxes rises, like cigarettes have.

This all depends on the supply and ingest curve. by and by taxes are added, the supply curve shifts up, when the contract decreases the consumers pay little tax, however when the demand increa ses the consumers pay much more taxes. The! demand curve has been decreasing after the increase in taxes because smokers are turning to the black market or bootleg cigarettes instead of paying for taxed cigarettes. It also depends on the age, younger smokers will die hard to quit when prices rise, while older smokers (who have a slight sensitive demand) pay all their taxes for the cigarettes. Producers pay more tax when the demand is relatively flat and the supply is steep. When...If you penury to get a full essay, order it on our website: OrderEssay.net

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