Smoke a Pack for the children

People hate tax increases, but they love it when the tax increases hit home when it does not affect them. Recently congress wants to renew and expand the State Children’s Health Insurance Program by financing it with a 61 cent increase in the federal cigarette tax. However when you combine cigarette taxes from the state and federal governments it will be obvious that cigarette consumption will decline due to the cost of smoking.

It may be a positive externality for people to stop smoking, but when you create a government program it needs to be fed with your tax dollars. When tax dollars are missing from a funding source then our representatives will be happy to raise taxes elsewhere, perhaps in your pocketbook.

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