[gridlock]

Why would anybody invest in a profit making enterprise when he can get 7% tax-free from California? That's money right out of the productive market.

There's no such thing as a free lunch. Eventually, the piper will need to be paid. California can play the shell game for a while, but the tobacco settlement money is a one-shot deal.

BTW, wasn't that money supposed to be going to medical costs or for anti-smoking efforts, and stuff like that?

[RonF]

Why would anybody invest in a profit making enterprise when he can get 7% tax-free from California? That's money right out of the productive market.

Doesn't the article say that the money will go to fund public works? That means that numerous profit-making construction companies, etc., will put employees to work putting up buildings, roads, sewers, etc. It would be preferable for this kind of money to be invested directly in such companies, but then again companies do need infrastructure.