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A review of the economic literature indicates that a 10 percent increase in the price of tobacco generally leads to just a 4 percent decrease in the demand for tobacco.[], [4] Hence, policymakers can usually raise tobacco taxes without producing such a precipitous drop in the sales of cigarettes that overall tobacco tax revenue declines.[] In effect, lawmakers are often able to hike cigarette taxes and achieve both of their goals at once smoking declines, while tax revenue increases

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