Why Would Raising The Tobacco Tax Reduce Youth Smoking?
Tobacco companies and economists agree that because kids have less day-to-day disposable income, they are more sensitive to price increases than adults. Although price increases may not prevent kids from experimenting with smoking, raising prices does help prevent childhood addiction by effectively reducing the number of cigarettes smoked. Economic studies indicate that for every 10 percent increase in cigarette prices, overall smoking is reduced by about 4 percent overall and by about 7 percent among youth.