New Data Suggests Cigarette Taxes a Risky Revenue Source
by Capitol ConfidentialData released this week by the Centers for Disease Control (CDC) reveal that the number of Americans who smoke fell between 2005 and 2010. Moreover, the CDC report containing the numbers indicates that the number of Americans who smoke 30 or more cigarettes per day has also declined.
3 million fewer people, or 1.5 percent, smoked in 2010 as compared against 2005 numbers. Meanwhile, in 2005, 13 percent of smokers smoked 30 cigarettes a day or more, whereas just 8 percent did in 2010.
The news will be greeted by health advocates. But the numbers should also grab the attention of legislators at both the state and federal level, who can be prone to treating cigarette tax increases as good policy capable of closing budget and funding gaps.
Back in 2009, the Reason Foundation identified that since 2003, cigarette taxes had been increased 57 times around the U.S., but that 68 percent of those hikes failed to result in projected revenue increases.
With more people giving up, however, experts say enhancing revenues via raising cigarette taxes could get tougher.







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