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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 […]

The FDA Plans to Limit Nicotine in Cigarettes—Will That Lower Smoking Rates?

Alex Cohen is the Director of Learning and Evaluation for the Richard M. Fairbanks Foundation. The dangers of smoking are well-known. Smokers are more likely to die from lung cancer, heart disease, lung disease and other deadly illnesses, not to mention the health risks caused by secondhand smoke exposure or the impacts to newborns caused by smoking among pregnant women. Yet smoking still persists—for example, more than 1 in 5 Hoosiers currently smoke—in large part due to the addictive effects of nicotine. More than two-thirds of smokers want to quit, but nicotine keeps smokers smoking and consuming the other carcinogens and toxicants for the long term. What if it was […]