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Contrary to the assumption that tobacco taxes are financially regressive, Jason Furman, the Chairman of the US Presidents Council of Economic Advisers, illustrated how the sum of benefits fully offset the additional cost of taxes on consumerstobacco taxes disproportionately benefit lower income households because as tobacco taxes increase, better health ensues, less money is needed for smoking-related healthcare services, and labor productivity improves due to reduced sickness and absenteeism

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