Tax Law Approach to Tobacco Control: A Tobacco Tax Framework, Legal Problems and Proposed Solutions

Abstract

This thesis explores taxation as a regulatory tool for tobacco control from a legal point of view. Following a historical description of the problem and the harmful character of tobacco use (a public health problem), an analysis is performed about whether or not a right to smoke exists under a jurisprudential approach, with an exploration of State interventions, and interference with nicotine addiction and youth initiation; concluding that these factors expand the field for government interference. The thesis also addresses the economic reasons for controlling tobacco, finding that the negative externalities, and uninformed decisions of tobacco users, require effective taxation measures to be used.

Most tools to control tobacco use are directed towards the sale of tobacco products, and the reduction of its consumption. However, efficient tax policy can provide funds for tobacco-related expenses (health care, economic losses, fire fighting, etc), and for tobacco control public policies. Additionally, tobacco taxation effectively reduces consumption and promotes deterrence.

This work analyses several aspects of regulatory taxation, such as tax policy under police power, non-fiscal effects of taxation, the choice to tax or regulate, sin and sumptuary taxes, tax as economic coercion. The thesis also addresses the limits of regulation through taxation, advantages of earmarking tobacco taxes to tobacco control policies, the problem of single-stage taxes and VAT models, as well as income tax and other tax forms that may be relevant to build a tax framework.

The literature on regulatory taxation and tobacco is largely found within the area of economics, and is targeted only towards excise consumption taxes. This work adopts a different view, by using a legal perspective, and by including other forms of taxation in the analysis, without neglecting the historical, sociological, or economic aspects. In addition, this thesis also demonstrates that tobacco taxation is the most important public policy for tobacco control, and hence, taxation mechanisms and legal related aspects deserve greater attention.

Finally, this thesis proposes a Tobacco Tax Framework to deal with all aspects of taxation of tobacco products and tobacco-related activities. It also analyzes the limitations of such a proposal and the relevant negative consequences (proposing counter-measures to cope with these problems). The research is mainly based on the U.S. experience; however this proposed Tobacco Tax Framework could be adapted to other countries as well. Tobacco use is a global problem which demands a global response.

Subject Area

Law

Degree Date

2005

Document Type

Dissertation

Degree Name

S.J.D.

Department

Dedman School of Law

Advisor

Christopher Hanna

Second Advisor

Joseph Norton

Third Advisor

Antonio de Moura Borges

Number of Pages

xvi, 538

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