A Significant Cigarette Tax Rate Increase In Illinois Would Produce A Large, Sustained Increase In State Tobacco Tax Revenues
State cigarette and other tobacco tax revenues are among the most predictable, steady, and reliable revenues that states receive. While these revenues do decline gradually over time as smoking and other tobacco use declines, the reductions in revenue are modest, predictable, and more than offset by the related reductions in public and private sector health care costs and other economic costs caused by smoking.
This paper explores how Illinois could use increases in cigarette tax rates to reduce smoking, improve population health, and save money.
Topics: Cost-effectiveness / Tax levels and structure / Tobacco taxes revenues / Impact on demand / Economic impact of tobacco control / Tax avoidance and evasion / Tax and price / Impact on the poor / Jobs and productivity
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