Economics Taxation on Tobacco Discussion Essay

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3. Third world countries are more likely to rely more heavily upon excise taxes on gasoline, tobacco, and alcohol because those are products that sell very well around the world. These are also products that are in a number of cases, particularly tobacco, that are cheaper than essential items such as water or food. Taxes on tobacco help poor countries who would rely on the taxes more wealthy and more reliant upon tobacco.

4. People in lower and middle income countries are more likely to react to taxation on tobacco because for the consumers of that product in those countries, they will have less income for food and shelter for example.

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People in wealthier countries can afford the increase; they may hardly notice the increase and if it bothers them on principle, for example, they can afford other alternatives just as easily.

5. Whether or not a government uses consumptive taxes or income taxes reveals what kind of government it is. A consumptive government would be ideally concerned with balancing the economic landscape of a specific country. Consumptive taxes would go towards redistributing a significant portion of a country's wealth across the whole country, and not just within the wealthiest communities......

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