Heartwarming
A story to warm the cockles of a libertarian's heart.
Lawmakers who hiked cigarette taxes in search of needed cash may find themselves in the precarious position of losing a chunk of the billions of dollars their states receive from the nation's top tobacco companies.By boosting excise taxes to more than $1 per pack in some cases, states have pushed smokers to abandon their brands or quit altogether. That in turn has threatened the profit picture for leading U.S. cigarette makers, analysts say.
Now had they hiked taxes to encourage people to stop smoking and improve their health, they could at least claim success. But they lacked even pure motives, wanting only to punish smokers financially to rake in more cash to the state coffers. I love this story.
Comments
Laffer Lives!
Idaho, in the midst of a financial crisis brought about by a spending spree (7.3% annual budget growth 1997 - 2002) is in the process of raising cigarette taxes, even attempting to impose a state tax on the semi-sovereign Indian nations within our borders. So we will see a loss of net revenue from tobacco taxes, and we will get to pay the legal fees as the tribes (rightfully) appeal any additional state taxes imposed upon them.
Posted by: Justin | May 2, 2003 05:40 PM
In the 80’s in Minnesota there was a push to raise taxes on cigarettes so that more people would quit smoking.
The Democrat governor signaled the legislature that if they raised cigarette taxes too high, too many people would quit smoking and the state would receive less revenue.
However, the main reason the Democrats gave for voting the tax down was that poor people could not afford to smoke as much and that was unfair.
One of those Democrats who voted against the tax increase became our Attorney General. He promptly sued the tobacco companies.
His reason for suing was this: A disproportionate number of poor people smoke and the resulting health problems raised our Medicaid expenditures. The tobacco companies must reimburse the state for the excess cost.
The hypocrisy of politicians concerning smoking is astounding.
Posted by: jake | May 2, 2003 09:52 PM
Bonjour!
Interesting thread. If you have time :
Mark
painting
Posted by: painting | April 25, 2004 04:46 PM