Skip to comments.New Hampshire Swimming Against the Tide on Tobacco Taxes [Smoke Signals in White Mountains]
Posted on 03/17/2011 8:42:37 AM PDT by 92nina
It seems like we've seen a new tobacco tax increase pop up every day at the state level over the past few years. Though a dubious revenue raiser and all-around ill-advised policy change, tobacco tax hikes are politically palatable ways for politicians to "balance" their budgets on the backs of an unpopular minority without making difficult decisions about how to shrink the size of government.
Most recently, Illinois (surprise!) is looking at a 102 percent cigarette tax increase to help fund a massive ongoing spending project. Nevermind the fact that roughly 80 percent of such tax hikes at the state level fail to meet their revenue projections. Recently New Jersey and Washington, D.C. actually realized a net revenue loss after increasing the levy.
Some states, however, are beginning to realize that tobacco tax hikes very rarely raise the amount of revenue promised, leaving gaping budget holes in their wake. Maine and Vermont have begun serious discussions about cutting taxes on tobacco and alcohol. But New Hampshire may be the closest to getting a bill through the legislature.
HB 156, which would reduce cigarette taxes by 10 cents per pack while also bringing down the rate on other tobacco products, passed out of committee on a 14-5 vote and looks to be headed for a floor vote in the House this week. With tobacco taxes especially high in the Northeast, HB 156 would increase New Hampshire's comparative tax advantage in the region...
Read more: http://www.atr.org/new-hampshire-swimming-against-tide-tobacco-a5954#ixzz1Gs2LSNhC
(Excerpt) Read more at atr.org ...
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