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Date: November 22, 2024 Fri

Time: 12:08 pm

Results for cigarettes (u.s.)

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Author: Goolsbee, Austan

Title: Playing with Fire: Cigarettes, Taxes and Competition from the Internet

Summary: This paper documents the rise of the Internet as a source of cigarette tax competition for states in the United States. Using data on cigarette tax rates, taxable cigarette sales and individual smoking rates by state from 1980 to 2005 merged with data on Internet penetration, the paper documents that there has been a substantial increase in the sensitivity of taxable cigarette sales that is correlated with the rise of Internet usage within states. The estimates imply that the increased sensitivity from cigarette smuggling over the Internet has lessened the revenue generating potential of recent cigarette tax increases substantially. Given the continuing growth of the Internet and of Internet cigarette merchants, the results imply serious problems for state revenue authorities.

Details: Ann Arbor, MI: University of Michigan, Ross School of Business, 2007. 43p.

Source: Internet Resource: Working Paper Series: Accessed May 15, 2012 at: http://www.bus.umich.edu/otpr/WP2007-5.pdf

Year: 2007

Country: United States

URL: http://www.bus.umich.edu/otpr/WP2007-5.pdf

Shelf Number: 125266

Keywords:
Cigarette Smuggling
Cigarettes (U.S.)
Internet Sales
Tax Avoidance
Tobacco Products