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Jump to full article: Manchester (NH) Union-Leader, 2009-06-27
Author: Andrew Cline
Intro: When John Lynch was first elected governor in 2004, New Hampshire had a cigarette tax of 52 cents per pack. In 2005, Lynch got legislators to raise it by 28 cents to 80 cents per pack. The budget passed on Wednesday raises it for the fourth time since Lynch became governor. It will be $1.78 per pack in five days.
At $1.78, New Hampshire's cigarette tax, once roughly 33 percent to 50 percent of what neighboring states charged, is now only 22 cents less than Maine's and 21 cents less than Vermont's. It's 73 cents less than what Massachusetts charges.
The governor and legislators have relied on this tax to fund their spending increases for four years. What are they going to do in 2011? Smokers in Vermont and Maine already have little incentive to drive over the border for their smokes. Our tax advantage on this product has been nearly erased. Will legislators, addicted to the revenue it produces, turn it into a disadvantage in two years?
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