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Excise taxes are levied because there's a negative externality that we want to internalize

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Because of the pleasant feelings nicotine provides tobacco users, those addicted tend to use more , decreasing the likelihood that the person will quit altogether. Emerging products in the U.S., including snus (dissolvable tobacco), electronic nicotine delivery systems (e-cigs), and waterpipes (hookah), continue to gain popularity in group social settings

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