According to the American Lung Association, for every ten percent increase in the price of a pack of cigarettes, youth smoking r
ates drop about seven percent. If lawmakers want to create a negative incentive for smoking, this information would support what action? A) Increase excise taxes on cigarettes.
B) Decreased excise taxes for cigarettes.
C) Lower the legal age to purchase tobacco products.
D) Remove the surgeon general warning labels from cigarette packaging.
The correct answer is A) Increase excise taxes on cigarettes.
According to the American Lung Association, for every ten percent increase in the price of a pack of cigarettes, youth smoking rates drop about seven percent. If lawmakers want to create a negative incentive for smoking, this information would support the increase in excise taxes on cigarettes.
When we talk about taxation, excise taxes are the kind of taxes charged to alcohol, fuel or in this case tobacco. So more taxation on tobacco products could help to diminish the cigarette consumption of adolescents and young people in America because the price of cigarettes would increase considerably. Young people would be short of money due to the expensive tobacco products.
