IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0043838.html
   My bibliography  Save this article

The Consequences of High Cigarette Excise Taxes for Low-Income Smokers

Author

Listed:
  • Matthew C Farrelly
  • James M Nonnemaker
  • Kimberly A Watson

Abstract

Background: To illustrate the burden of high cigarette excise taxes on low-income smokers. Methodology/Principal Findings: Using data from the New York and national Adult Tobacco Surveys from 2010–2011, we estimated how smoking prevalence, daily cigarette consumption, and share of annual income spent on cigarettes vary by annual income (less than $30,000; $30,000–$59,999; and more than $60,000). The 2010–2011 sample includes 7,536 adults and 1,294 smokers from New York and 3,777 adults and 748 smokers nationally. Overall, smoking prevalence is lower in New York (16.1%) than nationally (22.2%) and is strongly associated with income in New York and nationally (P

Suggested Citation

  • Matthew C Farrelly & James M Nonnemaker & Kimberly A Watson, 2012. "The Consequences of High Cigarette Excise Taxes for Low-Income Smokers," PLOS ONE, Public Library of Science, vol. 7(9), pages 1-7, September.
    • Handle: RePEc:plo:pone00:0043838
    DOI: 10.1371/journal.pone.0043838
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0043838
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0043838&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0043838?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Philip DeCicca & Donald Kenkel & Feng Liu, 2013. "Who Pays Cigarette Taxes? The Impact of Consumer Price Search," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 516-529, May.
    2. Keeler, Theodore E. & Hu, Teh-wei & Barnett, Paul G. & Manning, Willard G. & Sung, Hai-Yen, 1996. "Do cigarette producers price-discriminate by state? An empirical analysis of local cigarette pricing and taxation," Journal of Health Economics, Elsevier, vol. 15(4), pages 499-512, August.
    3. Austan Goolsbee & Michael F. Lovenheim & Joel Slemrod, 2010. "Playing with Fire: Cigarettes, Taxes, and Competition from the Internet," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 131-154, February.
    4. William N. Evans & Jeanne S. Ringel & Diana Stech, 1999. "Tobacco Taxes and Public Policy to Discourage Smoking," NBER Chapters, in: Tax Policy and the Economy, Volume 13, pages 1-56, National Bureau of Economic Research, Inc.
    5. DeCicca, Philip & Kenkel, Donald & Liu, Feng, 2013. "Excise tax avoidance: The case of state cigarette taxes," Journal of Health Economics, Elsevier, vol. 32(6), pages 1130-1141.
    6. David Merriman, 2002. "Cigarette smuggling does not reduce the public health benefits of cigarette taxes," Applied Economics Letters, Taylor & Francis Journals, vol. 9(8), pages 493-496.
    7. Gruber, Jonathan & Koszegi, Botond, 2004. "Tax incidence when individuals are time-inconsistent: the case of cigarette excise taxes," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1959-1987, August.
    8. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May.
    9. Matthew C. Farrelly & Jeremy W. Bray & Terry Pechacek & Trevor Woollery, 2001. "Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 156-165, July.
    10. Farrelly, M.C. & Engelen, M., 2008. "Cigarette prices, smoking, and the poor, revisited," American Journal of Public Health, American Public Health Association, vol. 98(4), pages 582-583.
    11. Franks, P. & Jerant, A.F. & Leigh, J.P. & Lee, D. & Chiem, A. & Lewis, I. & Lee, S., 2007. "Cigarette prices, smoking, and the poor: Implications of recent trends," American Journal of Public Health, American Public Health Association, vol. 97(10), pages 1873-1877.
    12. Hyland, A. & Higbee, C. & Li, Q. & Bauer, J.E. & Giovino, G.A. & Alford, T. & Cummings, K.M., 2005. "Access to low-taxed cigarettes deters smoking cessation attempts," American Journal of Public Health, American Public Health Association, vol. 95(6), pages 994-995.
    13. Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627, Elsevier.
    14. Goodarz Danaei & Eric B Rimm & Shefali Oza & Sandeep C Kulkarni & Christopher J L Murray & Majid Ezzati, 2010. "The Promise of Prevention: The Effects of Four Preventable Risk Factors on National Life Expectancy and Life Expectancy Disparities by Race and County in the United States," PLOS Medicine, Public Library of Science, vol. 7(3), pages 1-13, March.
    15. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.
    16. New York State Department of Health & (Kevin Davis) & (Matthew Farrelly) & (Qiang Li) & (Andrew Hyland), 2006. "Cigarette Purchasing Patterns among New York Smokers: Implications for Health, Price, and Revenue," University of California at San Francisco, Center for Tobacco Control Research and Education qt8026w9n0, Center for Tobacco Control Research and Education, UC San Francisco.
    17. Pim Borren & Matthew Sutton, 1992. "Are increases in cigarette taxation regressive?," Health Economics, John Wiley & Sons, Ltd., vol. 1(4), pages 245-253, December.
    18. Richard Connelly & Rajeev Goel & Rati Ram, 2009. "Demand for cigarettes in the United States: effects of prices in bordering states and contiguity with Mexico and Canada," Applied Economics, Taylor & Francis Journals, vol. 41(18), pages 2255-2260.
    19. Farrelly, M.C. & Pechacek, T.F. & Thomas, K.Y. & Nelson, D., 2008. "The impact of tobacco control programs on adult smoking," American Journal of Public Health, American Public Health Association, vol. 98(2), pages 304-309.
    20. Craig A. Gallet & John A. List, 2003. "Cigarette demand: a meta‐analysis of elasticities," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 821-835, October.
    21. A. J. Culyer & J. P. Newhouse (ed.), 2000. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lauren M. Dutra & Matthew C. Farrelly & James Nonnemaker & Brian Bradfield & Jennifer Gaber & Minal Patel & Elizabeth C. Hair, 2019. "Differential Relationship between Tobacco Control Policies and U.S. Adult Current Smoking by Poverty," IJERPH, MDPI, vol. 16(21), pages 1-16, October.
    2. Juan M. Martín Álvarez & Alejandro Almeida & Aida Galiano & Antonio A. Golpe, 2020. "Asymmetric behavior of tobacco consumption in Spain across the business cycle: a long-term regional analysis," International Journal of Health Economics and Management, Springer, vol. 20(4), pages 391-421, December.
    3. Christoph F. Kurz & Adriana N. König, 2021. "The causal impact of sugar taxes on soft drink sales: evidence from France and Hungary," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(6), pages 905-915, August.
    4. Koch, Steven F., 2018. "Quasi-experimental evidence on tobacco tax regressivity," Social Science & Medicine, Elsevier, vol. 196(C), pages 19-28.
    5. Erin S. Rogers & Elizabeth Vargas & Christina N. Wysota & Scott E. Sherman, 2022. "Latent Heterogeneity in the Impact of Financial Coaching on Delay Discounting among Low-Income Smokers: A Secondary Analysis of a Randomized Controlled Trial," IJERPH, MDPI, vol. 19(5), pages 1-11, February.
    6. Pete Driezen & Nigar Nargis & Mary E. Thompson & K. Michael Cummings & Geoffrey T. Fong & Frank J. Chaloupka & Ce Shang & Kai-Wen Cheng, 2019. "State-Level Affordability of Factory-Made Cigarettes among Current US Smokers: Findings from the ITC US Survey, 2003–2015," IJERPH, MDPI, vol. 16(13), pages 1-17, July.
    7. Nigar Nargis & Hua-Hie Yong & Pete Driezen & Lazarous Mbulo & Luhua Zhao & Geoffrey T Fong & Mary E Thompson & Ron Borland & Krishna M Palipudi & Gary A Giovino & James F Thrasher & Mohammad Siahpush, 2019. "Socioeconomic patterns of smoking cessation behavior in low and middle-income countries: Emerging evidence from the Global Adult Tobacco Surveys and International Tobacco Control Surveys," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-24, September.
    8. Kerem Shuval & Michal Stoklosa & Nigar Nargis & Jeffrey Drope & Shay Tzafrir & Lital Keinan-Boker & Laura F. DeFina & Mahmoud Qadan, 2021. "Cigarette Prices and Smoking Behavior in Israel: Findings from a National Study of Adults (2002–2017)," IJERPH, MDPI, vol. 18(16), pages 1-11, August.
    9. Enayatollah Homaie Rad & Mohammad Habibullah Pulok & Satar Rezaei & Anita Reihanian, 2021. "Quality and quantity of price elasticity of cigarette in Iran," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(1), pages 60-70, January.
    10. Kenchington, David G. & Shohfi, Thomas D. & Smith, Jared D. & White, Roger M., 2022. "Do sin tax hikes spur cheating in interpersonal exchange?," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    11. Michael David Thomas, 2019. "Reapplying behavioral symmetry: public choice and choice architecture," Public Choice, Springer, vol. 180(1), pages 11-25, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. DeCicca, Philip & Kenkel, Donald & Liu, Feng, 2013. "Excise tax avoidance: The case of state cigarette taxes," Journal of Health Economics, Elsevier, vol. 32(6), pages 1130-1141.
    2. Adel Bosch & Steven F. Koch, 2014. "Using a Natural Experiment to Examine Tobacco Tax Regressivity," Working Papers 201424, University of Pretoria, Department of Economics.
    3. Koch, Steven F., 2018. "Quasi-experimental evidence on tobacco tax regressivity," Social Science & Medicine, Elsevier, vol. 196(C), pages 19-28.
    4. Dinno, Alexis & Glantz, Stanton, 2009. "Tobacco control policies are egalitarian: A vulnerabilities perspective on clean indoor air laws, cigarette prices, and tobacco use disparities," Social Science & Medicine, Elsevier, vol. 68(8), pages 1439-1447, April.
    5. Bishop, James, 2015. "Interacting effects of state cigarette taxes on smoking participation," MPRA Paper 66609, University Library of Munich, Germany.
    6. Kevin Callison & Robert Kaestner, 2014. "Do Higher Tobacco Taxes Reduce Adult Smoking? New Evidence Of The Effect Of Recent Cigarette Tax Increases On Adult Smoking," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 155-172, January.
    7. James M. Bishop, 2018. "Does Cigarette Smuggling Prop Up Smoking Rates?," American Journal of Health Economics, MIT Press, vol. 4(1), pages 80-104, Winter.
    8. Rajeev Goel & Michael Nelson, 2012. "Cigarette demand and effectiveness of U.S. smoking control policies: state-level evidence for more than half a century," Empirical Economics, Springer, vol. 42(3), pages 1079-1095, June.
    9. Lesley Chiou & Erich Muehlegger, 2014. "Consumer Response to Cigarette Excise Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 621-650, September.
    10. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.
    11. Philip DeCicca & Donald Kenkel & Feng Liu, 2015. "Reservation Prices: An Economic Analysis of Cigarette Purchases on Indian Reservations," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(1), pages 93-118, March.
    12. Colman, Greg & Grossman, Michael & Joyce, Ted, 2003. "The effect of cigarette excise taxes on smoking before, during and after pregnancy," Journal of Health Economics, Elsevier, vol. 22(6), pages 1053-1072, November.
    13. Jin, Hyun Joung & Cho, Sung Min, 2021. "Effects of cigarette price increase on fresh food expenditures of low-income South Korean households that spend relatively more on cigarettes," Health Policy, Elsevier, vol. 125(1), pages 75-82.
    14. Lovenheim, Michael F., 2008. "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(1), pages 7-33, March.
    15. Johanna Catherine MacLean & Asia Sikora Kessler & Donald S. Kenkel, 2016. "Cigarette Taxes and Older Adult Smoking: Evidence from the Health and Retirement Study," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 424-438, April.
    16. Jonathan Gruber & Jonathan Zinman, 2000. "Youth Smoking in the U.S.: Evidence and Implications," NBER Working Papers 7780, National Bureau of Economic Research, Inc.
    17. Stehr, Mark, 2005. "Cigarette tax avoidance and evasion," Journal of Health Economics, Elsevier, vol. 24(2), pages 277-297, March.
    18. Steven F. Koch & Gauthier Tshiswaka-Kashalala, 2008. "Tobacco Substitution and the Poor," Working Papers 200832, University of Pretoria, Department of Economics.
    19. Kyle Rozema & Nicolas Ziebarth, 2015. "Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up," Working Papers 150015, Canadian Centre for Health Economics.
    20. Pearl Bader & David Boisclair & Roberta Ferrence, 2011. "Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis," IJERPH, MDPI, vol. 8(11), pages 1-22, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0043838. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.