Persuasive Paper Part 1: A Problem Exists, Brilliant Answers

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tax_research_proposal_1.docx

Running Head: TAX, ALCOHOL & TOBACCO, AND MEDICAL COSTS 1

TAX, ALCOHOL & TOBACCO, AND MEDICAL COSTS 2

Tax, Alcohol & Tobacco, and Medical Costs

Jerome Mayfield

Professor Rodriguez

Research & Writing

29 October 2016

Research proposal

Taxation of Alcohol and Tobacco, and its Impact on Medical Costs

There has always been tax on harmful substances such as tobacco and alcohol, mostly in the form of ‘sin tax.’ In as much as these taxes have been put in place to reduce the consumption of these substances, especially among low-income people and teenagers. Every year, millions of people and families are pushed into poverty because of rising healthcare costs. For this reason, governments are being forced to increase the share of healthcare costs which they cover, in an attempt to reduce the healthcare expenses for patients that have the potential to leave them in financial catastrophe. The best way for governments to accomplish this is through increasing the tax rates on tobacco and alcohol. The matter has been the subject of a great debate, and it forms the basis of this research paper. The hypothesis is that taxes on these substances should be increased so that governments can be in a better position to offset the medical bills of substance users and the public alike.

Characteristics of the audience for this research paper

1. The audience consists of the substance users and governments. These two are the core of the discussion, seeing as it is both their actions that determine the next step with regards to managing healthcare for substance abusers.

2. The audience can either agree or disagree with the findings of this research papers. Seeing as this research does not represent any form of legal documentation, the audience is at liberty to either support its findings or disagree with them.

3. Both audiences have a direct influence in the findings of this paper

Scope of the study

The study will explore the effect of taxation on alcohol and tobacco use, and how it reflects on the provision of medical services.

Outline

1. Introduction

2. Statement of the problem

3. Scope of the study

4. Research questions

5. Literature review

6. Analysis and discussion

7. Conclusion

Question to be answered

1. Should tax on alcohol and tobacco be increased to help pay for medical costs?

Answering this question will provide the much needed insight on the topic under study

Research Plan and organization

I. Topic: Taxation of Alcohol and Tobacco, and its Impact on Medical Costs

II. Investigator: <student’s name>

III. Hypothesis and research question

The overall goal of this study is to ascertain the impact of alcohol and tobacco taxation. The research question is:

Should tax on alcohol and tobacco be increased to help pay for medical costs?

IV. Research methods

a) Observational research

b) Secondary data.

Primary sources

i. Volume 14. Effectiveness of tax and price policies for tobacco control. In: IARC Handbooks of cancer prevention. Lyon: World Health Organization, International Agency for Research on Cancer; 2011.

ii. Cook, P. J. (2007). Paying the Tab: The costs and benefits of alcohol control. Princeton, NJ: Princeton University Press.

iii. Smith, D. E., & Mitry, D. J. (2006). Consumer sensitivity to changes in tax policy on consumption of alcohol. International Journal of Consumer Studies, 30(3), 247-255.

iv. Kostova et al. Prices and cigarette demand: evidence from youth tobacco use in developing countries. NBER Working Paper Series. Working Paper #15781. Cambridge MA: National Bureau of Economic Research; 2010.

Secondary sources

i. European Commission database on excise duties on alcohol, tobacco and energy. Brussels: European Commission, Taxation and Customs Union; 2014 (http://ec.europa.eu/taxation_customs/taxation/excise_duties/tobacco_products/index_en.htm accessed 22 October 2016).

ii. World Health Organization Website: http://www.who.int/en/

iii. Excise Duties and Levies website: http://www.sars.gov.za/ClientSegments/Customs-Excise/Excise/Pages/default.aspx