|Rates of tobacco tax increase, the level of smoking recedes
The Congress of USA reviews the possibility of the greatest federal tax rate on cigarettes. The analysis has shown that the tax increase leads to the acute reduction of cigarettes consumption. The level of this reduction directly depends on the amount of tax.
Cigarettes sales went 18% down in North Carolina last year after the tax has been raised in two steps from 5% to 35%. In Connecticut in 2002 the tax was raised from 50% to $1,51. Since that time, the cigarettes consumption per head reduced at 37%. New Jersey increased tax from 80% to $2,40 in 2002 – smoking reduced at 35%. California increased its tax up to 87 cents for a cigarettes pack in 1999. The level of smoking reduced at 18%. Unlike these states, South Carolina upholds the lowest tobacco tax, 7 cents since 1977. Cigarettes consumption there reduced only at 5% since 2000. As the Congress reviews the increase of federal tobacco tax up to $1 for a pack, America can undergo the biggest onetime reduction of smoking; consider experts in the field of health and economy. Frank Chalupca, the economist from the University of Illinois, who studies the impact of taxes towards smoking, forecasts that the level of smoking will reduce at 6%, if the tax increase at 61 cent for a pack will occur.
Recently, Senate approved the increase of tobacco tax rates as the way to pay for the services of public health for children. House of Representatives proposed to increase the tax at 45 cents. President of USA George Bush intends to veto the bill about the extension of health program budgeting.