The Effect of a Value Added Tax on the Price of Cigarettes1994-08-08
Marginalia; Memo from E J Battison, Tobacco Institute, to Fred Panzer regarding the effect of a value added tax (VAT) on the price of cigarettes. Responds to a request for an estimate of the effect on prices. Discusses assumptions necessary in this estimation. Finds that VATs at 15% or higher would be more burdensome than the current federal excise tax rate. Includes table showing these findings.