In this episode of the IEA Podcast, host Reem Ibrahim is joined by Kristian Niemietz and Tom Clougherty to dissect recent political developments through a classical liberal lens.
An assertion was made in this episode that the tobacco tax take exceeds the cost of smoking to society or to that effect. Recent studies have shown that by factoring in wider costs such as lost productivity, smoking overall has a net negative impact on government revenue. My source for this is from a study released in December 2023 by Action on Smoking and Health, and Landman Economics.
Whether the calculations are 100% accurate or not, it is clear that the discussion around the economic cost vs revenue gain on tobacco is a lot more complicated than implied in this episode.
Hello James – Our colleague Chris Snowdon has written about that study here: https://snowdon.substack.com/p/how-much-does-smoking-cost-britain. I'm not sure any of us would attach much weight to it. But you are right that there is a debate around these issues. Thanks for commenting.
Hello,
An assertion was made in this episode that the tobacco tax take exceeds the cost of smoking to society or to that effect. Recent studies have shown that by factoring in wider costs such as lost productivity, smoking overall has a net negative impact on government revenue. My source for this is from a study released in December 2023 by Action on Smoking and Health, and Landman Economics.
Whether the calculations are 100% accurate or not, it is clear that the discussion around the economic cost vs revenue gain on tobacco is a lot more complicated than implied in this episode.
Hello James – Our colleague Chris Snowdon has written about that study here: https://snowdon.substack.com/p/how-much-does-smoking-cost-britain. I'm not sure any of us would attach much weight to it. But you are right that there is a debate around these issues. Thanks for commenting.