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Article #5104

Re: Canadian proof (not) that taxation lowers cigarette consumption

#5104
From: Len DePalma
Date: Mon, 11 Jan 1993 18:47
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In article <1is2tvINNmrm@meaddata.meaddata.com>, dedek@meaddata.com (Mike Dedek) writes:
|> In article <27763@sybase.sybase.com>, joe@sybase.com (Joseph Weinstein) writes:
|> |> Dean Edell on KGO revealed some data about canadian tobacco consumption, where
|> |> taxation raised the cost of cigarettes to about $3 a pack. The data show that
|> |> prior to the tax increase, per capita consumption was equal to the U.S. In the
|> |> few years since the taxation the consumption rate has dropped by 30%.
|> 
|> This is not proof!  This is correlation.  Have _all_ other variables remained
|> constant during the study?  For example, were the subjects of the study 
|> exposed to other pressures to quit, such as adverse health information, 
|> inability to smoke in certain environments, etc?

Let's see: recent warning labels on all tobacco products, very
restrictive new laws on smoking in public places (including the
workplace), a strong public opinion against smoking, increased
public awareness and education of the risks, ...

As anyone who has kicked such an addiction will attest, the price of the
'sin' is mostly irrelevant.  Cigarettes are well over $5/pack now here
in Canada... and it is not uncommon to hear of a cornerstore being held
up for its cigarettes *instead* of cash!

However, I believe *both* Mike and Joe are correct here... since some
of the extra cash from the tobacco taxes funds the public education
announcements of the risks of smoking, etc.

|> Since 1900 in the US, personal income tax has increased dramatically
|> (from 0% to currently 28% or thereabouts).  The standard of living has
|> also increased.  Does this prove that increasing personal income tax
|> causes an increase in the standard of living? If so, we should all lobby
|> for increased taxes! 

This would depend on what the taxes were used for... when comparing the
US and Canada one could certainly jump to that conclusion quite easily! 
-----------------------------------------------------------------------
INTERNET: lenny@bnr.ca                 Any opinions expressed are mine.

"You get the most noise from the emptiest barrels."  (Burton Cummings)
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References: <1993Jan5.174930.1348@merlin.dev.cdx.mot.com> <1993Jan5.212124.21005@erenj.com> <1993Jan5.212328.21076@erenj.com> <1993Jan6.004147.18753@netcom.com> <1993Jan6.135302.25885@nynexst.com> <1993Jan6.181208.10712@merlin.dev.cdx.mot.com> <27763@sybase.sybase.com> <1is2tvINNmrm@meaddata.meaddata.com>

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From: lenny@bnr.ca (Len DePalma)
Subject: Re: Canadian proof (not)  that taxation lowers cigarette consumption
Message-ID: <1993Jan11.184742.6318@bmerh85.bnr.ca>
Sender: news@bmerh85.bnr.ca (Usenet News)
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Organization: BNR Ottawa, Fiber Systems Development
References: <1993Jan5.174930.1348@merlin.dev.cdx.mot.com> <1993Jan5.212124.21005@erenj.com> <1993Jan5.212328.21076@erenj.com> <1993Jan6.004147.18753@netcom.com> <1993Jan6.135302.25885@nynexst.com> <1993Jan6.181208.10712@merlin.dev.cdx.mot.com> <27763@sybase.sybase.com> <1is2tvINNmrm@meaddata.meaddata.com>
Date: Mon, 11 Jan 93 18:47:42 GMT
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