Federal and State Governments Look to Smokers for More Tax Revenue
10 Apr 09 | CSM
Though they hit poor Americans hardest, stiff taxes on tobacco can reduce healthcare costs by billions.
High cigarette taxes curtail smoking and reduce the habit’s societal costs. But they also take a big bite out of the earnings of America’s poor, who smoke cigarettes at nearly twice the rate of the average American.
That’s the paradox of the new 62-cent federal tax on tobacco, a historic hike that puts the average pack of smokes at $4.80 – $3.10 of which is taxes.
Ironically, wealthier smokers of high-end cigars aren’t likely to see any increase during their next visit to their local Tabac, since cigar rollers and dealers have vowed to absorb a new “per stick” hike for cigars. >>>