Saturday, April 11, 2009

Smokers Equal More Tax Revenue

By: Brionna Givens
There is a new 62 cent federal tax on tobacco which puts the average cost of a pack of cigarettes at $4.80, $3.10 of which is taxes according to the article Federal and state governments look to smokers for more tax revenue. The revenue from the new tax hike is said to be going towards health care. This new tax hike is said to hurt poor Americans the most because they smoke cigarettes at a higher rate than the average American.This may cause many Americans to buy cigarettes from overseas,tax-exempt areas like Indian reservations or buy them from states with lower taxes. Florida lawmakers are dealing with this problem because they want to increase the tax on tobacco to a dollar but many people will just go to Indian reservations to buy cigarettes. So they want to impose a law that would make it a $1,000 misdemeanor for a non-Indian smoker to have Indian cigarettes. But those who support this new tax hike says the new tax does more good than harm. According to the Campaign for Tobacco-Free Kids 1 million Americans are likely to quite because of the increasing cost and 2 million teenagers may never start smoking. Those who smoke cigars won't see a price hike because cigar rollers and dealers will eat the cost.

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