Essays on Taxation

Essays on Taxation

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The third chapter estimates the economic incidence of the excise tax on tobacco. Using historical price and tax data from 1954-2005, I estimate what portion of the tax is shifted to consumers. I experiment with controls for border crossing and indoor smoking bans. I find that a 10-cent tax increase causes price to increase by 8 cents immediately and by 13 cents in the long run.Many states justify these taxes as a correction for an externality caused by the detrimental effects of second-hand smoke, and to compensate the states for the high cost of state- funded health care for smokers. Some simply acknowledge thatanbsp;...

Title:Essays on Taxation
Author:Lori Elizabeth Stuntz
Publisher:ProQuest - 2007


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