Is this tax on cigarettes a progressive, regressive, or proportional tax? In 2002, New York State raised
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Is this tax on cigarettes a progressive, regressive, or proportional tax?
In 2002, New York State raised the cigarette tax by 39¢ to $1.50 a pack. Then New York City raised the tax from 8¢ to $1.50 a pack. The total tax increased to $3 a pack, and the price of cigarettes rose to $7.50 a pack—the highest in the nation. The average income of smokers is less than that of non-smokers.
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The tax on cigarettes described here would most likely be seen as a regressive tax A regressive tax ...View the full answer
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