People would just have even another incentive to buy even more smuggled cigarettes.
People would just have even another incentive to buy even more smuggled cigarettes.
> We find the tax is passed through at an average rate of 97%, leading to a 34% price increase. Demand in the taxed area decreases by 46% in response to the tax. A large amount of cross-shopping to stores outside of Philadelphia offsets more than half of the reduction in sales in the city and decreases the net reduction in sales of taxed beverages to only 22%.
You might be against taxing for ideological reason, or maybe you have other arguments than "it's a bad idea" and I'm open to hearing them, but so far it seems like a good idea.
The logic is to pay for the additional health care.
If the same is happening in Sweden, then there is already plenty of tax. But I guess more could be added.
A quick Google suggests it does in fact work as intended https://i.redd.it/jrn155a2gf4z.png