The paper “Smoker’s Avoidance to Pay Cigarette Taxes” suggests that the huge losses in revenue are because a large portion of smokers avoid paying tax. While this might be true, the author does not think we can really blame the people from avoiding taxes…
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Then he only pays 10 cents. This is tax evasion. And it is illegal.
Tax avoidance on the other hand is when a person chooses legal means to pay less tax. For example, New York City charges 10 cents per box of cigarettes. However, in Austin, Texas, for example, the cigarette tax is only 1 cent per box. A person avoiding tax would rather buy cigarettes in Austin than in New York City. This is legal. He does not falsify anything. He does not under-declare amounts.
Now it is understandable that people avoids tax. People want to save money. They would look for places where they can buy things less expensively. That is but natural. And they could not be faulted for that. They cannot be blamed if they look for places who charges lower taxes and buy their cigarettes there. And they cannot be blamed if they choose methods to limit the taxes they pay as long as they do it legally.
Now, with the problem of the city losing revenue, I think it can be addressed by formulating better regulatory policies. They could promote effective prevention of smuggling of cigarettes, limit mail-order purchases. They could also be stricter in enforcing licenses and they could punish unlicensed vendors and those that violate the law. ...Download file to see next pagesRead More
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(Smokers Avoidance to Pay Cigarette Taxes Personal Statement)
Smokers Avoidance to Pay Cigarette Taxes Personal Statement. https://studentshare.org/social-science/1534129-cigarette-taxes.
“Smokers Avoidance to Pay Cigarette Taxes Personal Statement”, n.d. https://studentshare.org/social-science/1534129-cigarette-taxes.
On the basis of recognized policy principles, research indicates that the presence of negative externalities often warrants government intervention in order to safeguard the welfare of the society by creating a succinct alignment of marginal social benefits and costs. This
However, research has indicated that the largest number of these children emanates from family where none of the parent is a smoker. This is an indication that they inhale the cigarette smoke while on the streets and other public places such as
Several tiers of taxes are imposed on the cigarette. First is the manufacturers' tax, next is the taxes paid by wholesalers and retailers. Then, a sales tax is imposed to a distributor for making the first sale, called a state tax. A stamp shows that the state tax has been paid, and a person seen with the untaxed package of the cigarette may face a penalty.
According to the author of the text, the amount of money that is circularized people to people by the country is the money that is collected in the shape of income tax, which is paid by the citizens. It is also mentioned that the idea was of Mr. Augustus Ceaser to apply tax system all around the world.
Smokers generate about 22.3% of the U.S. adult population, and they are by now paying more than their reasonable share of the tax load. The government makes more money off cigarettes per minute than the normal family makes in a year. Federal taxes on cigarettes have augmented 62.5% since 2000.
In 1988, The U.S Surgeon General's report concluded that "Cigarettes and other forms of tobacco are addicting . . . and nicotine is the drug in tobacco that causes addiction. The epidemic of addiction to nicotine among people has enormous consequences for public health.
The author believes that increased taxes would hurt the revenue of each state. In order to understand the implications of the increased taxation, the paper will discuss the importance of cigarette taxes to the economy of the United States and discuss the purpose of taxation as a social policy.
On the other hand, tax avoidance is legal and is but a natural tendency for all. For one is always inclined to choose to pay less tax.
When we say one evades tax, this means he does not pay the tax that he is legally required to pay.
One in five of all deaths every year in the United States have been credited to smoking, killing more than AIDS, suicide, alcohol, car accidents, homicide, and illegal drugs combined (American Cancer Society, 2004). Bishop and Yoo (1985) declared that a surgeon's general report in 1964, regarding the knowledge of severe health affect of smoking, showed a diminution in cigarette sales.
The health benefit model can are made up of four constructs that make up the perceived threats and net benefits. These are perceived susceptibility, perceived severity, perceived barriers and perceived benefits.
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