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Originally Posted by aceventura3
According to the Heritage Foundation study (the methodology use is here: http://www.heritage.org/Research/Hea...48-methods.cfm)
your information is correct with higher taxes more tax revenue will be collected in the short term, but there is price elasticity, as shown by the differing slopes under the proposed and current tax rates as shown in the chart below. Also i t is clear that the tax with have to be replaced, increased or new smokers are needed. |
I agree it should not be the basis of a permanent funding source. But the CBO estimates that it will generate enough revenue to expand the program for the 5 years proposed in the bill. It is a temporary (and successful, based on the existing program) solution to dealing with a critical heath crisis among the working poor.
Hopefully, by then, we might have meaningful, affordable and comprehensive health care, particularly for the uninsured.