A substantial body of research shows that cigarette tax increases lead to decreased cigarette consumption. A recent Congressional Budget Office study concluded that a 10 percent increase in cigarette prices leads to a 5 percent to 15 percent decrease in teen smoking rates, and a 3 percent to 7 percent decrease among all adults.
And a Washington University study finds that the same 10 percent cigarette-price increase also leads to a 1 percent decrease in alcohol consumption. But researchers found that when it comes to tax policy, all drinks aren’t created equal: “Strengthening of tobacco policies was associated with reductions in beer and spirits consumption, but not wine. This suggests that smoking and drinking beer are more strongly related than smoking and drinking wine.” The Washington Post
