Research

Relative Tax Rates, Proximity and Cigarette Tax Avoidance: Evidence from a National Sample of Littered Cigarette Packs

State and Community Tobacco Control (SCTC) Conference, September 2014

We use data from a national sample of littered packs to understand the determinants of tax avoidance. Our results demonstrate that tax avoidance is strongly correlated with economic incentives but avoidance will rarely if ever result in revenue declines following tax rate increases.