Tuesday, March 31, 2009

Federal Tobacco Tax Increase


This Wednesday a federal tobacco tax increase went into effect, upping the tax to $1.01 per pack of cigarettes.  Experts point out that increases in tobacco taxes usually result in a decrease in tobacco use.  With the economy in a recession, many states, such as Nevada, are looking at increasing state taxes on tobacco products to back fill the void left from the loss of revenue.  There are many reasons to impose a tobacco tax.  California's Congress is currently moving on bill SB 600, a state increase on tobacco taxes that not only generates revenue for the state but also revamps one of the most effective tobacco control efforts in the world.  AB 600 earmarks a percentage of the tobacco tax revenue for California's comprehensive tobacco control programs.  We know that every $1 spent on prevention and control saves $3 dollars in health care costs.

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