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Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking
  1. Shelley D Golden1,
  2. Matthew C Farrelly2,
  3. Douglas A Luke3,
  4. Kurt M Ribisl1,4
  1. 1Gillings School of Global Public Health, University of North Carolina, Chapel Hill, North Carolina, USA
  2. 2RTI International, Research Triangle Park, North Carolina, USA
  3. 3Center for Public Health Systems Science, George Warren Brown School of Social Work, Washington University in St. Louis, St. Louis, Missouri, USA
  4. 4Lineberger Comprehensive Cancer Center, University of North Carolina, Chapel Hill, North Carolina, USA
  1. Correspondence to Dr Shelley D Golden, Department of Health Behavior, Gillings School of Global Public Health, University of North Carolina, 364 Rosenau Hall, CB7440, Chapel Hill, NC 27599, USA; sgolden{at}email.unc.edu

Abstract

Background About half of all US states have cigarette minimum price laws (MPLs) that require a per cent mark-up on prices, but research suggests they may not be very effective in raising prices. An alternative type of MPL sets a floor price below which packs cannot be sold, and may be more promising. This new type of MPL policy has only been implemented in 1 city, therefore its benefits relative to excise taxes is difficult to assess.

Methods We constructed a set of possible state floor price MPL options, and matched them to possible state excise tax hikes designed to produce similar average price increases. Using self-reported price and cigarette consumption data from 23 521 participants in the 2010–2011 Tobacco Use Supplement of the Current Population Survey, we projected changes in pack prices and cigarette consumption following implementation of each paired MPL and tax option, for lower and higher income groups.

Results We project that state MPLs set at the average reported pack price would raise prices by $0.33 and reduce cigarette consumption by about 4%; a tax with a similar average price effect would reduce consumption by 2.3%. MPLs and taxes that raise average prices by more than $2.00 would reduce consumption by 15.9% and 13.5%, respectively. In all models, we project that MPLs will reduce income-based smoking disparities more than their comparable excise taxes.

Conclusions Floor price cigarette MPLs set at or above what consumers currently report paying could reduce both tobacco use and socioeconomic disparities in smoking.

  • Price
  • Public policy
  • Socioeconomic status
  • Taxation

This is an Open Access article distributed in accordance with the Creative Commons Attribution Non Commercial (CC BY-NC 4.0) license, which permits others to distribute, remix, adapt, build upon this work non-commercially, and license their derivative works on different terms, provided the original work is properly cited and the use is non-commercial. See: http://creativecommons.org/licenses/by-nc/4.0/

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