Question

Please prepare an individual argument using economic concepts. Important: It's AGAINST the tax.
Topic: (Against): Florida should not enact an 0.05/ml tax on e-liquid for e-cigarettes.
Point:
• Topic Sentence
• Topic Sentence
For example:
Topic:
Florida should not enact an 0.05/ml tax on e-liquid for e-cigarettes.

Point:
Enacting a tax on e cigs, which has proven to be effective in helping individuals quit smoking may cause an increase in tobacco use. Therefore, causing a substitution effect.

Answer 1

Introduction

A substitution good is one which helps in reducing demand for the other product in this case which is cigarettes respectively.

A product is classified as a substitute when an increase in its demand has a reverse impact on the demand for the other respectively. I.e. the consumer can choose between one of the two and the demand for the other goes down respectively.

In the case above, E-Cigarettes act as a substitute to Tobacco cigarettes and have proven medicinal benefits that they help in reducing the overall consumption of tobacco for most users respectively.

Therefore, it is clearly indicative that people substitute tobacco based cigarettes in favor of E-Cigarettes which tend to give the same kind of feeling without the additional requirements of tobacco and therefore reducing the overall effects.

On the other hand, these tend to be cheaper and are therefore preferred over the traditional counterparts.

Case Specifics:-

Prices of the products have a big impact on the amount of substitute effect which they have. Any significant increase in the prices of the products will tend to have a big impact on the demand pattern of the goods since people can substitute the same for the alternative product offered for sale.

A tax increase would require most manufacturers of e-cigarettes to increase the prices of their product and as a result of this people will buy traditional cigarettes instead of e cigarettes. As a result this could have an effect on the consumption of traditional cigarettes which could go up and the result would be bad for the society.

Currently, the prices are well balanced because of which traditional cigarettes are easily substituted since the new ones tend to be cheaper and equally effective. A price rise would lead to demand reduction and could have an effect on the health of people as well which currently is in favor of quitting smoking respectively.

The government must look at the social impact on increasing the taxes before taking such a decision respectively.

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