Higher Taxes Do Not Deter Smoking

If you are still a tobacco cigarette smoker, you'll notice that the prices keep increasing. The primary reason for large price hikes is a higher tax rate. Taxes fuel the government's accounts, providing funding for many much needed programs. The other reason for tax hikes on tobacco products is to encourage people to quit. Some people might be deterred from buying another pack when they hear the price (As high as $15 a pack in New York City!), but not everyone will abandon one of hardest addictions to break.

According to a recent study published in the International Journal of Environmental Research and Public Health conducted in Canada at Concordia University by economists found smokers between the age of 25 and 44 were most unresponsive to price increases. Higher taxes do prompt low and middle income earners to make additional attempts at quitting.

Study co-author, Sunday Azagba, PhD candidate at Concordia University, said, "Contrary to most studies, we find that the middle-aged group, which constitutes the largest fraction of smokers in our sample, is largely unresponsive to taxes." Cigarette taxes might be a key component in anti-smoking measures, but as this study shows, it is dependent upon how people react to those taxes.

The study looked at three age groups of individuals; 12 to 24, 25 to 44, 45 to 65, from 1998 to 2009. Data was collected through the National Public Health Survey.

In Canada, it is a common belief that higher cigarette prices will reduce smoking among target populations such as students. Mesbah Sharaf, co-author and PhD candidate, said, "Overall it was smokers from lower socioeconomic who are more price-responsive than those from higher socioeconomic groups. If there is a 10 percent increase in taxes then smoking participation will fall by 2.3 percent."

Commonly recognized in studies conducted in the United States, this study also showed that people with a post-secondary education were less likely to smoke than those with a high school or lower education. Azagba stated, "Higher taxes, for some people, when consumption of addictive goods is driven by cues, may be counter productive."

Taxes aren't necessarily the answer. Many of those who cannot afford to smoke due to smaller incomes continue to find ways to feel that addiction. How many small robberies that occur in convenience stores take place per year? Out of those robberies, how many are younger people looking for a few dollars and cigarettes? I bet the numbers would be surprising.