Symmetry wrote:Hmm- kind of an ambiguous question there. Certainly there are people in the UK who have stopped smoking because of the increase in price. There are also plenty of people who still smoke, but I suspect you knew that.
An honest question would have been "Has it worked in reducing smoking?", which was what I suggested.
I think it has, but in combination with a lot of other policies and general social change.
The last sentence illustrates my point in combination with my other point. Namely this equation:
GENERAL POLICES + SOCIAL CHANGE + TAX INCREASE = CHANGE IN BEHAVIOR
TAX INCREASE does not = CHANGE IN BEHAVIOR
TAX INCREASE = INCREASE IN GOVERNMENT REVENUES
I can't think of a tax increase alone that changed behavior.
However, I wonder if we tax the shit out of tires... will we get flying cars?
EDIT - Let me posit another conundrum. If the reasoning behind an increased tax on cigarettes is to stop people from smoking, why isn't the tax so onerous as to make a material effect? In other words, why have a 2% tax on cigarettes instead of a 90% tax?