For this assignment, you must submit a report to your state's government consisting of 1000-1250 words in which you address the issue of excise taxes on cigarettes in your home state. Your report must address the situation and a recommendation/educated response should be provided.
For full credit, you must address the following in your report:
Use the Library and other resources to find information on the following items:
Find the excise tax on a pack of cigarettes in a state of your choice.
Find the excise tax on a pack of cigarettes in 2 neighboring (or nearby) states.
Calculate the difference in tax rates. Will consumers be tempted to cross state lines to buy cigarettes?
Suggest an economic policy to maximize state tax revenues from the cigarette excise tax. Why do you recommend this?
Give a recommendation/educated response on whether the excise tax is necessary or excessive. Also, do you believe that cigarettes need to have an excise tax? This should be 1000 to 1200 words.