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Blowing Smoke: Does Tax Evasion via Cross-Border Sales Erode the Impact of Cigarette Taxes?

Alex Cohen is the Director of Learning and Evaluation for the Richard M. Fairbanks Foundation. Smokers, like all people, respond to incentives. One powerful incentive is price. When something becomes more expensive, people are less likely to consume that item. This fact is borne out in the extensive literature on the impact of cigarette taxes on smoking: As prices rise through taxes, fewer people smoke. This happens by keeping non-smokers, including youth, from starting in the first place and by encouraging current smokers to quit. But do increases in cigarette taxes in one state incentivize smokers (or tobacco retailers and wholesalers) to cross the border into neighboring states where cigarettes […]

DECLINING INFANT MORTALITY RATES SHOW PROGRESS, BUT WE CAN’T STOP HERE

The decline in Indiana’s infant mortality rate is encouraging, but we can’t stop here. Stakeholders across all sectors must play a role in significantly improving Hoosier health outcomes.