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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 […]

Indiana’s Tobacco Control Efforts Woefully Underfunded

Claire Fiddian-Green is the President & CEO of the Richard M. Fairbanks Foundation. Comprehensive tobacco control efforts play a critical role in reducing smoking and lowering the health and economic toll of the smoking epidemic. But Indiana woefully underfunds these initiatives, falling far below federal recommendations and dollars spent in other states, according to a new report commissioned by the Richard M. Fairbanks Foundation. Indiana devoted just $8.2 million in federal and state spending in 2016 to preventing Hoosiers from starting to smoke, helping them quit, and protecting people from secondhand smoke. This is only 11 percent of the $73.5 million recommended by the Centers for Disease Control and Prevention […]