Mind the gap: CA tax increase not passed along equally

Mind the gap: CA tax increase not passed along equally

A study co-authored by ASPiRE researcher Lisa Henriksen found that California’s $2 tobacco tax increase resulted in larger than $2 price increases, with more over-shifting on premium than discount cigarettes. For Newport (menthol), however, significantly less tax was passed on to smokers at convenience stores in neighborhoods with higher proportions of African-American residents. The study, published Nov. 1 in Tobacco Regulatory Science, suggested that non-tax mechanisms to increase price (e.g., eliminating price discounts and coupon redemption) could support the intended impact of the tax increase.