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In this assessment I will looking at how the implementation of a tax has impact on an economy of a country and the consumers and the producers of the Nations. A tax is when a government takes the revenue from the consumers and producers of the specified country being talked about. In this assessment I will looking at an article that talks about the implementation of a “excise” tax on tobacco in Australia. This tax was implemented by the Australian prime minister Kevin Rudd and it was backed up by the Labor Party of Australia which is a left leaning party of that country. Which makes sense because such reforms and taxations align with the ideas of the political left. 
And at the time it was opposed by the Liberal Party of Australia who is a more right wing party, with ideas of economic liberalism and less taxes on goods. The reasons given by Kevin Rudd to implement such tax where the following: to decrease the consume of tobacco on Australia and reduce the budget deficit of Australia. 

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This graph is a representation of how this tobacco tax would implement the supply and demand of the Tobacco market in Australia. The tax on tobacco at was of 12.5% more than the original price, this meaning that all tobacco products in Australia would increase that percentage and every year would increase the same percentage. By looking at this graph we can see that the supply line increased causing the prices of tobacco to increase and the quantity produced of tobacco to decrease.

So the implementation of such tax will affect in negative and positive way the consumers this is because. This tax will force some Australians to go a more illegal alternative because they will not want to pay the price of tobacco and will find another alternative, I am referring to the people of Australia who have a lower income and are consumers of tobacco. Another negative aspect of such tax is that such tax would not impact people of a high income, because to people with a high income would not care for an increase of 12.5% of the price of tobacco because they have money to spare. And so connect to what I said earlier of this Tax being unfair and classist to low income Australians. 

And another negative impact that this tax will have on the consumers is that their income will decrease and this leads to their standards of living dropping. This is because by the consumers paying more of their money for tobacco products they may spend more money on other things.

The other negative aspect of such tobacco tax is the fact it has a negative impact on the producers of this product and it has a slim potential to encourage the small producers of this product to go to a route where they can make more revenue but this being illegal, this being the black market of drugs. Moreover another negative impact to the producers is that with them also having to pay the taxes they are going to have a lower profit and so less money to spend on their workers and will make them fire many of their workers in order to not go bankrupt.

No I will looking at the positive aspects of such tax. The main positive aspect that such tax would have on Australia and the Australian people is that in a way this tax will decrease the consume of tobacco on the population, something that is good. Because the consume of tobacco products is highly harmful on people and can cause many dieses such as cancer more specifically lung cancer.
And another positive aspect to the Australian government would be to use the profits of such tax and reduce the budget deficit of Australia and this would improve the economic situation of Australia.

In conclusion we can see that this tax has the potential to help the people of Australia to have a more healthy lifestyle and improve their national economy. But there is large list of negative aspects  that far outweighs the positives, this being that this tax only benefits the ones with a high income and damages economically the producers and low income consumers of Tobacco. 

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