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→Increasing the taxes can increase tax revenue
The entry in taxes on cigarettes in Tennessee contains nonsense. Increasing the price of a product, can increase the revenue even if the number of sold items decreases. The entry suggest otherwise. [[User:Order]]
The entry in taxes on cigarettes in Tennessee contains nonsense. Increasing the price of a product, can increase the revenue even if the number of sold items decreases. The entry suggest otherwise. [[User:Order]]
:What you just said is nonsense. The Tennessee state government and anti-tobacco coalitions fully expected people to continue smoking; raise the price without hurting sales and the state gets that increase in revenue, which is exactly what's happening now. I've seen people walk into my store complaining about the high prices, but not once did these same people cut down their smoking as a result. The people who raised the taxes on cigarettes knew it too. [[User:Karajou|Karajou]] 11:15, 31 July 2007 (EDT)
:What you just said is nonsense. The Tennessee state government and anti-tobacco coalitions fully expected people to continue smoking; raise the price without hurting sales and the state gets that increase in revenue, which is exactly what's happening now. I've seen people walk into my store complaining about the high prices, but not once did these same people cut down their smoking as a result. The people who raised the taxes on cigarettes knew it too. [[User:Karajou|Karajou]] 11:15, 31 July 2007 (EDT)
What I said is not nonsense. To paraphrase Andy, this is just basic economics. You can increase prices, leading to a decrease in demand, and still make a profit. Happens all the time. [[User:Order]]