Tobacco Taxing In Australia

1229 Words3 Pages
bulb-icon

Recommended: Consequences of smoking and solutions

Introduction
According to the Australian Bureau of Statistics, it is stated that “smoking is recognised as the largest single, preventable cause of death and disease in Australia” which highlights it is an issue that is recognised frequently in Australian society (Australian Bureau of Statistics, Gender Indicators, Australia , 2014). There have been proposals introduced to support a push in an overall decrease in smokers in Australia such presenting a form of tax on cigarettes, which has seen to be successful. “Tobacco taxing” as it is called, is still current in today’s society which continually sheds light on the fact that different policies that become implemented, affect a change in smoking behaviour in different ways.
Overview of Issues …show more content…

Glenn Hubbard, 2010, p. 144). It is evident in figure 4 that a tax on cigaretes, reduces both consumer surplus and producer surplus due to the fact that consumers are paying a higher price on the cigarettes and as the producers price falls, the producer surplus also suffers a loss. Some of the total consumer surplus and producer surplus will result in a sum of deadweight loss which is depicted in Figure 2 as the blue shaded area. Enforced deadweight loss has to be small in relation to the overall tax revenue that the government will receive as it continually increases, and if this were to happen, an efficient equilibrium would occur (R. Glenn Hubbard, 2010, p. …show more content…

Statistics show that the increased affordability for cigarettes due to the taxation effects people of low income earning more than people that earn higher amount of income per year. Table 3 shows that the average amount of prevalent smokers becomes considerably higher as the amount of total income decrease thus affecting people of lower income more than higher.

Employment Categories Total prevalence of regular smoking (2010)
Upper White Collar (professionals, business owners, executives) 14 Males, 12 Females, 13 Persons
Total = 39
Lower White Collar (e.g. sales, managers) 20 Males, 19 Females, 20 Persons
Total = 59
Upper Blue Collar (includes skilled workers) 26 Males, 20 Females, 25 persons
Total = 71
Lower Blue Collars (semi-skilled workers, unskilled) 30 Males, 29 Females, 30 Persons
Total =

Show More
Related

  • Dr. Haviland’s A Silence That Kills and Florence King’s I’d Rather Smoke than Kiss

    1058 Words  | 3 Pages

    The smoking issue is very complicated and some of the arguments are beyond the scope of this essay. Still, we can obtain a balanced outlook if we consider the following: the facts of smoking, individual right, societal responsibility, and the stigma of smoking. Haviland and King write essays which contain very important points, but seem to contain a bias which may alienate some people. To truly reach a consensus on the smoking issue, we must be willing to meet each other halfway. We must strike equilibrium between individual right and societal responsibility.

    Read More

  • Analysis On Taxes On Cigarettes

    1154 Words  | 3 Pages

    In one of the article of Baltimore Sun that entitled “Time for the feds to raise the cigarette tax”, it informs us about the government activity on the taxation of cigarettes and how it benefits Maryland by saving lives of smokers, as it’s stated that more than 70,000 lives has been saved due to the lower smoking rates. Maryland has collected revenue of nearly $400 million from tobacco and alcohol. Between the period of 1998 and 2009 there has been a decline in adult smoking rates by 32.6 percent. The congressional budget office have come into conclusion that hike in the tax of cigarettes from $1.01 to $1.51 per pack would help trim costs to Medicare, also there would be a decline in death rates and improve health, this would therefore make the citizens of the US live longer and paying taxes longer. It’s a possibility that tobacco companies are to make a riot, by making statements such as tax revenue is not the dependable source of revenue, and increasing tax will only inspire smuggling. If poor people are the ones who’ll quit the habit of smoking, so much better for them as they’ll benefit a better quality of life, but there will be a raise in the cost of Social security as there are healthier individuals who are likely to live longer, and hat would result in more retirees.

    Read More

  • Public Health Issue: Smoking

    2016 Words  | 5 Pages

    This essay is aimed to explore, analyse and discuss smoking in adults. Smoking is a public health issue as such is one of the major contributors to high mortality and ill-health in the adults which is preventable (Health and Excellence Care (NICE) (2012). The United Kingdom (UK) is known to have the highest number of people with a history of smoking among people with low socio-economic status (Scriven and Garman, 2006; Goddard and Green, 2005). Smoking is considered a serious epidemic in the UK and the National institute for Health and Excellence Care (NICE, 2012) stated that 28% of adults with low economic status are tobacco smokers compared with 13% of those with economic status or having professional incomes. Furthermore almost 80,000 people died in England in 2011 as a result of smoking related issues and 9,500 admissions of children died due to being second hand smokers (WHO, 2005). This essay focuses on definition of smoking, the aim is to underline the relationship between smoking and the determinants of health and then, the size, prevalence, and morbidity trend of smoking will be explored. Furthermore, some public health policies introduced to confront the issues around smoking will be investigated and finally, the roles of nurses will identify health needs the public so as to promote good health and their wellbeing.

    Read More

  • Tobacco: The Negative Health Impact Of Tobacco

    1457 Words  | 3 Pages

    Smoking cigarettes is a detrimental practice not only to the smoker, but also to everyone around the smoker. According to an article from the American Lung Association, “Health Effects” (n.d.), “Smoking is the leading cause of preventable death in the U.S., causing over 438,000 deaths per year”. The umbrella term for tobacco use includes the use of cigarettes, cigars, e-cigs and chewing tobacco. While tobacco causes adverse health consequences, it also has been a unifying factor for change in public health. While the tobacco industries targets specific populations, public health specifically targets smokers, possible smokers, and the public to influence cessation, policies and education.

    Read More

  • Summary Of Impoding High Taxes On Cigarettes

    253 Words  | 1 Pages

    The article states that the the policy of impoding high taxes on cigarettes and other unhealthy products has a number of social benefits, then the article provides three reasons of support. However, the professor argues that each point of the article can be challenged so she refutes all the author's reasons.

    Read More

  • Economics of Tobacco Sales

    1614 Words  | 4 Pages

    Each year 440,000 people die, in the United States alone, from the effects of cigarette smoking (American Cancer Society, 2004). As discussed by Scheraga & Calfee (1996) as early as the 1950’s the U.S. government has utilized several methods to curb the incidence of smoking, from fear advertising to published health warnings. Kao & Tremblay (1988) and Tremblay & Tremblay (1995) agreed that these early interventions by the U.S. government were instrumental in the diminution of the national demand for cigarettes in the United States. In more recent years, state governments have joined in the battle against smoking by introducing antismoking regulations.

    Read More

  • Smoking Tobacco Cigarettes In Canada

    671 Words  | 2 Pages

    Smoking Tobacco Cigarettes At today’s day in age, almost everyone knows a person who smokes cigarettes. According to the Canadian Tobacco, Alcohol and Drugs Survey (CTADS), “the overall smoking prevalence in 2013 was 15% (4.2 million smokers).” ("Summary of Results for 2013. " Government of Canada, Health Canada and the Public Health Agency of Canada.

    Read More

  • 7 Eleven PEST Analysis

    1414 Words  | 3 Pages

    The Victorian ‘Tobacco Act 1987) was the first broad tobacco legislation and aimed to reduce smoking prevalence. The Act states ‘A person must not sell a tobacco product to a person under the age of 18 years.” (Human Service Western Region Tobacco Project Report) As part of this Government intervention, penalties were introduced with the maximum penalty for breaching the provision being $1000 first offence, $2000 second offence and possible loss of tobacco license for subsequent offences. Tobacco sales make up a large percentage of convenience stores sales (Refer to 5.????) and this Government crackdown on cigarettes which has continued to be prevalent has in some respects increased cigarette sales. The state government has acknowledged and concluded “A Disproportionate number of cigarette sales to minors occurred at milkbars and service station convenience stores compared to supermarkets, newsagents, and tobacconists.)

    Read More

  • Price Elasticity of Demand for Cigarettes

    692 Words  | 2 Pages

    Price Elasticity of Demand for Cigarettes (a) Studies indicate that the price elasticity of demand for

    Read More

  • Smoking: Good For The Economy?

    940 Words  | 2 Pages

    Kuneman W. David. “Economic losses due to smoking bans in California and other states.” http://www.smokersclubinc.com/economic.html. March 2005. Web. 02 February 2010.

    Read More

  • Tobacco Should Be Illegal

    1456 Words  | 3 Pages

    “The unfortunate thing about this world is that good habits are so much easier to give up than bad ones” (Somerset Maugham). Almost everyone has good and bad habits but the bad ones can lead to addictions. When it comes to tobacco addiction, it is a habit that leads to different diseases and causes death. Tobacco should be illegal.

    Read More

  • Cigarette Smoking Should Not Be Banned

    1520 Words  | 4 Pages

    Although it is beneficial for the economy for the production of tobacco products it is extremely risky to use the product. According to researchers second-hand smoke is terrible for everyone in the world who walk by someone who is exhaling. In the article by Robert Proctor “Why ban the sale of cigarettes? The case for abolition” he states that cigarettes are the “most deadl...

    Read More

  • Advantages And Disadvantages Of Progressive Tax

    1111 Words  | 3 Pages

    In the other hand we have the progressive system tax. the first rule that every person that is a researcher in the economic field is that the things are not as they seem to be. It is not necessary to be an economic expert to understand if a tax applied over tobacco might impact in reducing the consumption of smoking. According to Admir Ramadani which is an economist the issue of tax system is so complex that it cannot have a definitive conclusion. the best choice to find a solution for the tax system is to achieve the balance between honesty and equity and also efficiency. the progressive tax want a fair distribution of the wealth by increasing the marginal tax.

    Read More

  • Smoking Ban - Smoking In Public Places

    1269 Words  | 3 Pages

    Smoking is a simple process of inhaling and exhaling the fumes of burning tobacco, but it has deadly consequences. According to the American Cancer Society, smoking is the most preventable cause of death in America today (Encarta, 2002). Until the 1940?s, smoking was considered harmless. It was at this time that epidemiologists noticed a dramatic increase in the cases of lung cancer. A study was then conducted between smokers and nonsmokers to determine if cigarettes were the cause of this increase. This study, conducted by the American Cancer Society, found increased mortality among smokers. Yet it was not until 1964 that the Surgeon General put out a report acknowledging the danger of cigarettes. The first action to curb smoking was the mandate of a warning on cigarette packages by the Federal Trade Commission (Encarta, 2002). In 1971, all cigarette advertising was banned from radio and television, and cities and states passed laws requiring nonsmoking sections in public places and workplaces (Encarta, 2002). Now in some cities smoking is being completely banned from public places and workplaces and various people are striving for more of these laws against smoking.

    Read More

  • Argumentative Essay On Smoking Cigarettes

    1146 Words  | 3 Pages

    Almost 80% of the worlds smokers are lower middle class to lower class. (who.int) This statistic that was taken from the World Health Organization, W.H.O., shows that around the globe it is the less educated making these choices.

    Read More

More about Tobacco Taxing In Australia

Open Document