enjoyed substantial increases in revenue, even while reducing smoking. It can reduce smoking rate.
              It can reduce smoking rate.
             Raising the tobacco tax has an immediate impact on reducing youth use of tobacco and tobacco-related death and disease. Cigarette tax increases reduce smoking rates among young people, pregnant women and other age groups.
              It can improve health care and reduce medical cost. (Berman, 2001)
             These funds from the cigarette excise taxes have helped states balance budgets and fund essential services like health care, education and tobacco prevention programs.
             So it is clear from the overwhelming evidence that the tobacco excise tax increase is an outstanding situation. It reduces smoking rates, reduces health care costs, and raises much needed revenues. Furthermore, National data shows that every 10 percent increase in the real price of cigarettes will reduce overall cigarette consumption by four percent and reduce youth smoking by between seven and 14 percent.
              Producers produce fewer products, so it affects to employment.
             The tobacco industry is concentrated in the Southeastern part of the U.S., that region would suffer a net loss of 37,000 jobs. In fact, the total job loss will be much higher unless Congress returns every penny of the higher cigarette revenues to the people in the form of tax cuts. Otherwise, there will be a net reduction in purchasing power and a slowing of economic growth, as a result of the higher net tax burden.
              Wholesalers and retailers gain less income. (www.ers.usda.gov)
             Declining consumption means less sale volume to the wholesalers and retailers. Therefore, the wholesalers and retailers gain less revenues.
              Black market gets benefit from consumers. (McMahon, 2002)
             The cigarette smuggling is a very serious problem in the United States. The report presents estimates of the revenue loss from smug...