The Impact of Cigaratte in New York

UNIVERSITY OF LA VERNE

La Verne, CA

, 2014

The Impact of Cigarette in New York

Submitted in partial fulfillment

of the requirements for the degree

of Master of Business Administration

Professor Kenneth Kim

BUS 500B Economics for Decision making

College of Business and Public Management

Department of Business Administration

I. Introduction

a. Motivation

Although the cigarette taxes are every high, but there still are more and more smokers in the U.S. recently. The U.S. government levies cigarette taxes for two reasons, to discourage smoking and to raise the U.S. government revenues. Even in the United States, cigarettes are not very popular than other countries, but still affect Americans health. On July 1, 1862, the United States government needed for additional revenue from the cigarette taxes because of the American Civil War. One of the reasons for the support of increased cigarette taxes among public health officials is that many studies show that this leads to a decrease in smoking rates (Wikipedia, 2010). In the entire US states cigarette tax, the New York State tax is the highest. In general, we want to know the reasons for the highest cigarette tax in New York is to increase taxes or to reduce the number of smokers.

b. Source(s) (where you get the story from)

We had searched about cigarette taxes from the websites because the health issues are very important for the humans. Also, we wanted to know how cigarette taxes raise revenues.

c. Literature review

i. Had this been done before?

Yes.

1794 – The first excise tax. During American Civil war – the government raised the tax and they didn’t repeal the tax (Jane, 1993).

1921 – Iowa pass a tobacco excise tax at the state level in addition to the federal tax. Other states quickly followed suit, and by 1950, 40 states and Washington D.C. enacted taxes on cigarette sales (Jane, 1993).

1969...