Tobacco.org

Cigarette taxes gain popularity  

BOSTON -- The potential windfall from raising the cigarette tax and the relatively low political cost proved too tempting to resist last week for House lawmakers who approved a $1-per-pack hike.

State legislatures across the country are turning to cigarette taxes to help balance budgets at a time when money is tight and hiking gas, sales and income taxes is unthinkable.

The proven revenue generator and smoking deterrent, however, is questioned by some in the tobacco industry. Thomas Briant, director of the National Association of Tobacco Outlets, points to places like New Jersey as evidence that states might have hit their ceiling when it comes to taxing smoking.

According to Philip Morris, only 12 of the 48 states that implemented cigarette-tax hikes from 2003 to 2006 met their revenue projections.

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