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Besides, if you talk to smokers, you'll find that the increased price is very little incentive to quit. My brother was a long-term smoker. He always said that he would quit if cigarettes reached $1.00 a pack, then $1.50, then $2.00, etc. He didn't quit until last year, with his first heart attack. Price had nothing to do with it.
I quit 6 months ago and price had everything to do with it. I am sure if the price of cigarettes increases, less people smoke. If you don't buy that, then you don’t believe in capitalism. Yes, cigarettes have more inelastic demand than most things, but people quit when the price increases.
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Campbejm, I wouldn't have a problem with the higher taxes, if they in fact went to help pay for smokers in Medicare, Medicaid, etc. The problem is, they don't. Those taxes go straight into the general fund, and Medicare, et. al. Those programs end up under funded, because instead of using the taxes to cover the additional health costs of smoking they are used as an excuse to reduce program funding by the amount of the cigarette taxes collected.
It's all one big pot. The outlays have to come from somewhere. If you eliminate taxes in one area, then you have to increase revenues somewhere else. And quite to the contrary those areas DO NOT go under funded. Social Security, Medicare, and Medicaid represent about one third of our national budget. To put it in perspective, the Congressional Budget Office projects
defense outlays for 2003 at $407 billion and outlays for
Social Security and Medicare and Medicaid at $745 billion.
SSI is one of the biggest election hot topics and will NEVER go under funded or be reformed until it is too late.
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Even non-smokers eventually become "mortally ill". That's caused by something called "old age", so, by your argument, old age should be taxed. Come to think of it, if a person dies from smoking before they become eligible for medicare, there is a net savings to the government. Even if a person lives long enough all of the studies would indicate I believe that smokers tend to die earlier than non-smokers do. That's a savings on Social Security and pensions, etc. Perhaps, using your argument, we should tax non-smokers for not smokiing and I have no doubt that if they thought they could get away with it, the politicians would.
Two things:
1) Dieing as a result of cancer or emphazema is NOT AT ALL the same as dieing of old age.
2) More poor people smoke than rich people. Poor people are more likely to need government help for healthcare. Smokers are sicker more often than non-smokers. So: less smoking = less sick people needing government help. Conversely, as the number of people smoking increases, the needed government outlay for healthcare assistance increases. Why shouldn't the increase in outlay be matched by increasing the tax on an activity that causes the increase in expense.
Do you think it is more fair to spread this expense around to the people not causing the cost?
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I must say, this is one of the more unique definitions I have seen of a "free market". I'm not quite sure how you get from a "free market" to an arbitrary decision to tax curtains kinds of behavior and the products associated with it. A more appropriate definition of "free market" might be that health insurance and life insurance companies charge higher premiums for smokers than they do for non-smokers. That has nothing to do with government taxes though.
A free market is one in which consumers can respond to all costs. Free market doesn't mean you can do what ever you want regardless of the costs on society. A functioning market is one in which the prices of goods reflect ALL costs. Therefore, taxing cigarettes sends a more correct price signal to consumers than untaxed cigarettes since there is a large societal cost. (When I say cost, I not only refer to government outlays in real dollars, put also things like lost productivity in the economy resulting from the poor health of smokers. I use the word in the economic sense.)
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...but the bottom line is they do it because they can.
You're right. The failings of democracy are many, but it’s the only way I'd want to live.