...The question, “Should health care be funded by an increased tax on alcohol and tobacco products?”, is an important question within the current climate in America, whereby the cost of health care is sky-rocketing, with no seeming end in sight. I propose that increasing taxes on these products is an enormous not only a benefit to the health care system but also a benefit to society as a whole. The burden of these increased taxes would be relatively minor to each individual, who uses either alcohol or tobacco, but would add up to a large contribution to the overall health budget, when all of these taxes are pooled together. Not only would this provide a positive financial contribution, it could also lower the burden of the health-care needs of individuals who drink and smoke. Research has shown that increasing taxes on alcohol alone decreases the number of car crashes by a such marked degree, that this in itself would justify raising taxes on alcohol. The fact that this is particularly evident in teenage drinkers only underscores the positive impact that these taxes would have....
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...Code of Federal Regulations (Annual Edition) page at the U.S. Government Printing Office Web site; you can also browse the e-CFR, a currently updated version of the CFR. Please feel free to contact TTB's National Revenue Center concerning any of the requirements that may not be clear to you. For your convenience, the mailing address and telephone number of the National Revenue Center are listed on the final page of this publication. John Manfreda Administrator, Tax and Trade Bureau -------------------------------------------------------------------------------- Liquor Laws and Regulations for Retail Dealers Contents 1. General 2. Retail Dealers Must Register with TTB 3. Requirement to Amend Registration 4. Requirements on Retail Dealers Who Sell to Other Dealers 5. Closures on Bottles of Distilled Spirits 6. Refilling, Reusing and Disposing of Liquor Bottles 7. Prohibited Purchases of Distilled Spirits 8. Required Records 9. Inspection by Alcohol and Tobacco Tax and Trade Officers 1. General Retail dealers of distilled spirits, wine or beer must comply with certain requirements...
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...Petroleum and Petrochemical Bulletin |U.S. Application of API MPMS Chapter 11.3.3 |Bulletin 012-TBN | |Ethanol Density and Volume Correction Factors |Rev. 0 | In late 2011, API MPMS Chapter 11.3.3, Miscellaneous Hydrocarbon Product Properties – Ethanol Density and Volume Correction Factors was published. The standard includes implementation procedures for both pure and denatured ethanol. For volume or density correction from observed temperature to 60 °F, the implementation procedure given in API MPMS Ch. 11.1-2004 shall be used. Pure and Denatured fuel grade ethanol’s are considered “special applications” (formerly known as Table 6C or Table 54C) with an alpha coefficient of 0.000599/°F or 0.001078/°C for Pure Ethanol and 0.000603/°F or 0.001085/°C for Denatured Ethanol. The standard also notes “However, if occasional table differences of 0.001% (1 in 100, 000 volume units) are acceptable to all parties, commodity group Refined Products (formerly known as Table 6B) with an API gravity of 50.47 (pure) and 50.61 (denatured) may be used in lieu of the 6C table”. For this alternate Table 6B use the API must be entered, calculated and reported to (2) decimal places which makes this method impractical and as such is not recommended by IFIA member companies. Unlike the revised Temperature and Pressure Volume...
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...describing the tobacco tax issue in the United States. The first part of the paper defines the tax issue and gives a brief history of the tobacco excise tax. The second section discusses the stakeholders and an analysis of the issue. And lastly, I describe my policy perspective. The Tobacco Tax Issue Is taxation on tobacco an effective means of decreasing the smoking rate or is it just an elaborate ploy to increase taxes by playing on voter emotions? The message is clear and has been etched in our minds over the years; tobacco kills. Tobacco and secondary tobacco products kill an estimated 440,000 Americans per year. Over the past several decades, state and local governments have passed tobacco excise taxes and other laws regulating the use of tobacco. But who is actually behind the legislature? First Tobacco Tax Tax on tobacco was first implemented by Alexander Hamilton, secretary of the treasury, in 1794 (Altman, 2009). The tax was soon repealed, but excise taxes have been a staple in federal revenues since the American Civil War. In 1921, Iowa successfully passed the first state tax on tobacco, with many states to follow. Not only does the federal government and state governments tax tobacco, but now city municipalities are also imposing a local tax on tobacco (Altman, 2009). But what is the current tobacco tax about? There are several sides to the argument, as is the case in most taxes. Advocates of the tobacco tax argue that...
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...Philippine Tobacco Taxes Summary It is globally known that the Philippines is one of the most significant largest consumers of tobacco in the Western Pacific Region of the world. The high demand of tobacco use has constantly increased for many years and significant numbers of Filipino youth are smokers. In effect to the high levels of tobacco use, the Philippines had considerably facing adverse health issues and economic consequences from tobacco. With the current low tobacco product taxes and prices in the Philippines, significant increases in tobacco taxes will recline tobacco use and its harmful effects on health and economic consequences while directly generating new revenues. Tobacco Use and Its Consequences According to recent statistics, 30% of most adult Filipinos use some form of tobacco product, with 27.9% smoking manufactured cigarettes and 22.5% recorded daily smoking. Predominantly men smokes and about one in ten women are also tobacco users. The current population estimates, roughly 19 million adults consume tobacco in the Philippines. The socio-economic gradients in smoking prevalence are strong in the Philippines, coming from the lower socioeconomic sector two or more times as likely to smoke as those in higher socioeconomic sector. Tobacco use among the youth sector is a significant problem in the Philippines with 22.7% of 13 to 15 year olds in 2007 reporting using some tobacco product, and 17.5% reporting cigarette smoking. Tobacco use among girls has...
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...QUESTION 1: Using the five factors (culture, social, politic, legal and economy) choose a product or service and relate how Malaysian Economy has managed to be “above water” which currently other countries face. (min1500words) 1.0 Introduction The use of cigarette for cigarette has been practiced for centuries. The cigarette plant has been grown in America since the 17th century and cigarette has been used in various forms since. The form of cigarette cigarette by rolling the leaves in fine paper was frequently done by hand for those who practiced it, which limited the habit of cigarette. In 1865, a man named Washington Duke from North Carolina began to roll cigarettes and sell them to others for profit. In 1883, James Bonsack invented a machine that could roll cigarettes and produce thousands per day. Bonsack began a business called the American Cigarette Company, which was the first company to produce cigarettes on a large scale. The mechanized production of cigarettes widely increased the popularity of cigarette, and made cigarettes much more accessible to those who wanted to smoke. Premade cigarettes were available for those who did not wish to roll their own cigarette and cigarettes became available in quantities by the pack. In the late 19th century cigarettes were being sold in packs and marketed throughout the United States. Cigarettes were packaged into containers of ten that were marked with the name of the company that manufactured them and various logos...
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...Cigarette tax measure may have unintended consequences | | | | Matt Evans On the surface, this November's Ballot Measure 44 is simplicity itself. The measure will increase taxes on cigarettes by 30 cents per pack, as well as on other tobacco products, and the revenue raised will be dedicated to the Oregon Health Plan and tobacco use reduction programs. What could be more straightforward? However, the measure raises a host of interesting issues that voters should weigh prior to casting their votes. Most important, of course, is the core of the measure, its purpose: to raise money for the Oregon Health Plan, ostensibly to offset costs the plan incurs from smoking-related illnesses. State revenue estimators understand that anytime you raise the tax on something, you will get less of it. This is certainly true in the case of Ballot Measure 44 and its effect on cigarette smoking. In fact, the State Legislative Revenue Office estimates that cigarette use will decline about 4.5 percent due to the increased taxation. In a series of four steps over the past 17 years, Oregon has raised the tax on cigarettes from 9 cents per pack to the current 38 cents. Each of these tax increases represented a smaller amount per pack than Measure 44's 30 cents. In every instance, tobacco use has fallen by more than the current projection of 4.5 percent. In fact, tobacco use fell an average of almost 9 percent--twice the state's estimate--after those four cigarette tax increases. The...
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...ECONOMICS ASSIGNMENT Topic :TAXATION OF TOBACCO IN INDIA By- Group 3 Q1.Interpret table 3.1 and 3.5.The team is asked to evaluate the future prospects of ITC's tobacco products in the rural areas based on the numbers in these two tables. Write a brief report explaining ITC's rural market potential based on the numbers in the case According to the table 3.1, there is a minimal increase in the excise duty of unfiltered cigarettes in the years 2006-07 and 2007-08 and large increase can be seen in the year 2008-09. In the case of filtered cigarette, there has been a minimal increase or rather we can say that excise duty has been constant for 2007-08 and 2008-09. In the case of bidis, the excise duty is constant for 2006-07 and 2007-08 while decreases in 2008-09. So we can make out from this given table that by increasing the cost of unfiltered cigarette the government wants people to shift from unfiltered to filtered cigarette which will eventually lead to betterment of public health. Secondly, it also helps the Government in the generation of revenue. According to table 3.5, there has been an increase in consumption of bidis and less in cigarettes from 2000-01 to 2005-06. While due to the increase in price of bidis in the year 2006-07, the cigarette consumption of brands likeGold flake, Navy cut, Gold flake small and Wills flake has increased. As the price is increased there would be less consumption of cigarette while on the other side the revenue generated would still...
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...Abstract Cigarette and Tobacco taxation has been a hot topic for years. Typically, the taxing of this product is accepted as there are health concerns associated with the consumption of tobacco products. The concept of raising cigarette taxes aligns with goals of increasing revenue for local, state and federal governments, and also works to increase the overall public health of the country. Although the taxation is widely accepted, there are concerns associated with who the taxation effects primarily, how funds are being utilized and issues with meeting budget goals with the earned revenue. This paper addresses each of these topics in an effort to identify the effectiveness of cigarette and tobacco taxation. Introduction The concern associated with the health risks of tobacco use and cigarettes began as early as the 1930’s. The ill effects of tobacco were studied by epidemiologists in long term case studies to assess the increase of lung cancer mortality to smoking. The findings were considered merely casual by Surgeon General Leroy Burney in 1957. As a few years passed, the concern between the relationship of smoking and health grew. This led to The American Cancer Society, The American Heart Association , The National Tuberculosis Association and the American Public Health Association collaborating together to address a letter to President Kennedy. In this letter they asked for a call to action on the issue of cigarette smoking. The Kennedy Administration...
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...reason for it. The study however does point out that if the prices are increased for a longer period, the demand might in fact be elastic as people would be impacted more by the increase in prices. The research further suggested that the demand elasticity varies amongst poor and rich countries along with the population demographics. (Perucic, 2012) In general when the prices are increased or taxes are raised on inelastic products, the beneficiary is often the producer or the government as the tax burden would be on the consumers. A tax on cigarettes would mean the consumers bearing a greater tax incidence which would in fact discourage them to spend more on tobacco products. (Tax-inelastic-demand n.d.) As seen in the graph above, a tax imposition on cigarettes would shift the supply curve on the left with the equilibrium quantity reducing from Q to Q 1. The inelastic demand would mean that the tax burden is borne by the consumers whereas the producers bear a small fraction of the tax applied. The government while increasing taxes on cigarettes needs to ensure that all relevant substitutes for the...
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...cigarettes in Australia Introduction: Recently, there has been a new trend in the tobacco industry in Australian society due to the increased prices of cigarettes, mainly for the reason that “with more than 3.1 million people still smoking today, tobacco still being the leading cause of death by a wide margin… “ (Scollo & Winstanley, p.xiii, 2008). Therefore, this report will illustrate the market structure of Australia tobacco industry, and then make analysis about the price chances on the demand and supplies for cigarettes. The third and the fourth part of the report are about the impacts of this change and some government policies for the tobacco industry, respectively. The market structure: Table 1: Tobacco companies operating in Australia: summary table for 2006-07 | BATA | PMA | ITA | Total revenue ($m) | 1476.7 | 623.3 | 386.5 | Net profit after tax ($m) | 410.7 | 172.6 | 2.7 | Shareholders’ funds ($m) | 632.6 | 403.4 | 25.1 | Total assets ($m) | 2962.1 | 627.5 | 176.7 | Number of employees | >110019 | 691 | 299* | Approximate market share in Australia (%) | 4619 | 34* | 1820 | * Figure for 2006 ** Figure assumed on the basis of market share reported by BATA and ITA, and assuming that a small percentage of the Australian market is accounted for by imported brands. Source: The BRW 1000, BAT website, BATA website, Imperial Tobacco Group Website. The tobacco industry in Australia has been considered as a subset of the global industry and its...
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...Tobacco Taxation 1 Tobacco taxation is a hot topic and all 50 state governments have enacted taxes on cigarettes, and many have raised their taxes several times. Taxes on cigarettes are a way governments can achieve two social objectives; the first objective is to reduce the number of citizens who smoke. The government issuing the cigarette tax hopes that the rise in the cost of a pack of cigarettes will persuade people to quit smoking. The second objective is to raise government revenue. A cigarette tax, like any other tax, increases the amount of revenue governments can spend on social programs. Where there’s smoke, there’s taxes — especially for New Yorkers. In a 2010 budget move officials say will generate $440 million in revenue, the state legislature passed a bill that gave New York the highest cigarette tax in the country. On July 1, 2011 every pack sold in the state cost an extra $1.60, raising the total state tax to $4.35, pushing the average cost of a pack up to $9.20. For New York City residents, the cost of a pack will now come out to close to $11 — a $2 rise from just over a year ago. The $440 million in revenue will benefit health care programs, AIDS drugs subsidies, tobacco cessation programs and $71.6 million will go to the state cancer research center in Buffalo. Supporters also applaud the health benefits, saying it will reduce the number of smokers by tens of thousands of people. Tobacco consumption is the leading cause of preventable death in many...
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...CHAPTER 1 The Problem and Its Background Introduction Tobacco smoking or cigarette smoking is the practice of burning cigarette, taking the smoke into the mouth and then releasing it. This practice dates back as early as 5,000 – 3,000 B.C. but was introduced to Eurasia in the late 17th century where it has also been a commonly traded product. The practice received speculations and a lot of criticisms since it was first introduced but it somehow made its way inside the society and became widespread upon the invention of automated cigarette-rolling apparatus. The tobacco has been first introduced to other countries before reaching the Philippines. The idea of smoking tobacco first came from the Arawak Indians in 1492 that was noticed by Christopher Columbus. Seven years later, Amerigo Vespucci found out that the inhabitants in an island near Venezuela have already been practicing chewing dried leaves. In 1591, Mexico has already been growing tobacco at an increasing rate. It was believed that the tobacco was introduced by the Spaniards and Portuguese to mainland Europe, East Indies and Asia while they are on an expedition for searching for spices and spreading Christianity. Cigarette smoking became one of the highly sought after vice in the Philippines because of the affordable price of each stick ranging from seventy-five centavos to 2 pesos each, depending on its brand. The Philippine government came up with an idea of increasing the taxes imposed upon alcoholic...
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...THE ECONOMICS OF TOBACCO TAXATION IN INDIA Tobacco taxation in India tends to be low for the most commonly consumed tobacco products. In order to suggest ITC about their strategy for the rural market, we must understand the taxation policies that prevail. India has a tobacco tax structure which is complex, different taxes for hand-rolled versus machine-made bidis, etcetera. In the table given, we observe that bidis are taxed less than filtered cigarettes. At the same time, the tax remains constant for bidis whereas it increases for cigarettes. In table 3.5, we observe that cheaper the tobacco, higher the tax because we assume that cheaper tobacco is more hazardous. But for bidis though the cost is cheap, it is taxed less as it focuses on the mass consumer whose buying potential is less. So its demand is more elastic than the expensive tobacco. Considering the data given in table in 3.1 and 3.5, tobacco products like bidis are less taxed, and it caters to the needs of majority of the consumers. Cigarettes and bidis are consumed by classes of people from different economic strata. Rural markets have a potential for bidis since the lower income group resides more in rural areas. The taxation on bidis is almost constant through the years, it is more profitable to enter the tobacco market through bidis in rural areas.. Own price elasticity in rural areas for bidis is more elastic than in urban areas. For example, an increase of 10% in price will decrease the quantity...
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...Chapter 1 Problem and Review of Related Literature Introduction Assessing the Main Effects of population strategies, such as tobacco taxation and pricing, on high-risk subpopulations is important for understanding the reach and effectiveness of such strategies. Increased tobacco taxes, passed on to consumers in the form of higher cigarette prices, provide an economic disincentive to those who smoke or may be contemplating smoking. Indeed, evidence from this knowledge synthesis strongly supports increasing cigarette prices through tobacco taxation as a powerful strategy for achieving major reductions in smoking among some, but not all, high-risk populations. This is a highly effective policy tool for reducing smoking participation and consumption among youth, young adults and persons of low socioeconomic status. In contrast, major gaps exist in our knowledge about the impact of price on persons diagnosed with mental health or non-nicotine substance abuse disorders, heavy and/or long-term smokers. Raising cigarette prices is an effective tobacco control policy in reducing smoking among youth. While most studies of young adults found that increased prices also result in reductions in smoking behavior, the magnitude tends to be smaller than for youth. Chaloupka and Pacula argue that because tobacco is an addictive substance, response to increased prices will occur more slowly than for non-addictive goods; therefore long-term gains may be larger than short-term gains. The impact...
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