CIGARETTE TAX INCREASE

Cigarette Tax Increase



Executive Summary

The study is related to the cigarette tax increase which particularly focuses on the consumption of cigarette. The variables that are used in the study are tax and price increase which is the dependent variable and consumption of cigarette which is the independent variable. From the results of the study, it is found that there is positive relationship of increase in tax and price if the cigarettes with the consumption of the cigarettes among the people which reflects that as the tax and price increase, the consumption of cigarette will increases and vice versa.

Table of Contents

Introduction4

Data4

Dependent variable6

Independent Variable6

Regression Analysis6

Model10

Summary10

Introduction

By increasing cigarette taxes and the impact that it has on the economy and on the wellbeing of smokers. The government has a means by increasing the cigarette sales tax and can achieve two purposes socially. The objective is to limit the total number of people who smoke. The administration hopes that by increasing costs this will encourage people to quit smoking. Nonetheless, the secondary objective taken by the government when they increase cigarette tax prices is to increase their income.

Data

Some of the issues that the study will focus on;

What precisely does our government spend cigarette tax revenues on?

How does the spending of the tax revenues move our economy?

Is the wellbeing of paying cigarette taxes worth it?

The study focuses on researching and studying the buying habits of cigarette smokers and the increase in taxes and the price of cigarettes and how it has affected the smoking community. To assist, support, and validate the findings throughout the study, secondary sources will be used.

In every piece of research, the concept of methodology is one of the most significant, as it functions as a guide for the whole research that is the buying habits of cigarette smokers get affected due to the increase in taxes and the price of cigarettes and how it has affected the smoking community. Designing the appropriate research methodology is a difficult but essential that determines to a high degree the significance and validity of the research results; any mistakes and omission can lead to the wrong direction and thus adopting the wrong statistical techniques and tools (Aiken, West and Reno, 1991).

The most popular research approaches used to make informed scientific decisions include qualitative and quantitative methods. Differences between quantitative and qualitative research lie in their approach to identification of the research problems and reviews of the literature. The two approaches have different strategies in specifying the purpose, data collection, data analysis, reporting, and evaluating research (Cohen, 2003). In identifying a research problem, past researchers, claimed that it is descriptive and explanatory for quantitative but exploratory for qualitative research (Keith, 2006).

Quantitative research uses scientific methods to investigate phenomena and address issues and problems. These methods utilize an objective manner that enhances the reliability of the information and reduces biases. Qualitative research answers questions and explores new knowledge in a natural environment. This approach attempts to understand all aspects of people's behaviors, ...