Cigarette Tax

The cigarette tax is a tax that is placed on cigarettes by the federal government. This tax is in addition to any state and local taxes on the retail price of the product. On April 1, 2009, cigarette taxes will see the largest increase ever at one time. The tax per package of cigarettes will rise from 39 cents to $1.01, a total of 62 cents more. Cigarette manufacturers are predicting a decrease in sales and, as a result, have already raised their prices as well, some as much as 81 cents per pack.Fox News: Single Largest Cigarette Tax Hike ... (March 29, 2009)

Pros and Cons

Proponents of the tax increase are in favor of the taxes not only to help fund children's health insurance programs, but also to help with public health. Each time the tax on cigarettes is increased, the number of users decreases. Supporters of the tax point out that a drop in users means less risk of cigarette-associated diseases, such as lung cancer.

Those who oppose the tax hike feel that it is wrong for the government to raise the taxes on a small minority of the population to pay for a health program that would benefit the entire country. They also point out that many cigarette smokers are themselves poor and addicted to the nicotine content, and that taxing this segment of the population amounts to taking advantage of them.YouTube: Jump In tobacco Tax ... (March 25, 2009)

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