States Eye Tobacco Tax Hikes To Finance Health Initiatives
States are using tobacco tax increases to finance health-related initiatives. Supporters say the efforts provide revenue and can reduce smoking rates. However, the tobacco industry argues that smokers already face an unfair tax burden and that tax increases encourage cross-border purchases and bootlegging. California's universal health plan died in the state Senate in part because of opposition to a tobacco tax increase of $1.50 per pack.
- "States Look to Tobacco Tax for Budget Holes" (Sack, New York Times, 4/21).