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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 […]

One Way to Tackle Teacher Shortages in Indiana: Raise Salaries for STEM Teachers

Claire Fiddian-Green is the President & CEO of the Richard M. Fairbanks Foundation. Last week, the Indiana Chamber of Commerce released a report commissioned from Ball State University’s Center for Business and Economic Research, which found that students in small school districts have lower academic achievement results than students in larger districts. The study’s authors point to resource constraints at small districts – defined as districts with enrollment of less than 2,000 students – that limit their ability to offer a broader array of rigorous course offerings, like AP Calculus and AP Chemistry. 19 percent of Indiana’s public school students are enrolled in districts with enrollment below the 2,000-student threshold, […]