Is tobacco tax a progressive tax?

Answer 1

Answer:Double edged sword -

Regressive as it is hoped that the raising of them causes less purchases of the product, so less tax could be raised. Hopefully, the same $ would still be spent on another taxable item.

Progressive as the lessening of smoking will lower society health costs and the need to fund medical programs.

Answer:In economics, a progressive tax is defined as one in which the effective tax rate increases as the taxable base amount increases. In most cases, the base amount may be income or expenditure. Strictly speaking, consumption taxes are neither progressive nor regressive, since their rates do not vary with the amount of expenditure.

However, a less rigorous definition of the taxable base might be the taxpayer's ability to pay. Under that definition, consumption taxes, like taxes on gasoline, alcohol and cigarettes, are perceived as regressive, since a greater proportion of the expenditures of individuals with lower income goes to paying the taxes.

Answer 2

No; a cigarette tax is regressive tax because spending on cigarettes takes a percentage of money out of the total the consumer pays.