3 min read
Fixing Regressivity: How to Make Cigarette Taxes Fair—and More Effective
Cigarette taxes are regressive—they take a larger share of income from the poor. The regressivity can be addressed: dedicate tax revenue to cessation support for low-income smokers, subsidize reduced-risk products, and make the tax system progressive.
A cigarette tax that takes 5% of a poor smoker's income and 0.5% of a rich smoker's is regressive. But the tax revenue can be used progressively: funding cessation support for low-income smokers, subsidizing reduced-risk products, providing NRT for free. **The regressivity of cigarette taxes is real—but it can be addressed. The policy that combines high taxes with progressive spending is both more equitable and more effective than either high taxes alone or low taxes alone.**
