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Indiana’s Smoking Rate Continues to Worsen, Despite Improvements Nationally

Alex Cohen is the Director of Learning and Evaluation for the Richard M. Fairbanks Foundation. According to recently released data from the Centers for Disease Control and Prevention, Indiana’s already high smoking rate has gotten worse, in contrast to declines in most other states. That is bad news for Hoosiers and our state’s economy. Smoking remains the number one cause of preventable death in the United States and takes a heavy toll on Indiana especially. An estimated 11,100 Hoosiers die each year from smoking, and an additional 1,400 nonsmokers die annually from exposure to secondhand smoke. Smoking in Indiana also translates to $3.3 billion annually in healthcare costs and another […]

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 […]