Excise Taxes

National

Educated NY smokers dodge cigarette taxes—report
The most educated smokers have been found to be the most likely to avoid New York City’s cigarette tax by buying lower-tax or tax-free cigarettes either online or at Indian reservations. While 60% of those with a college degree were dodging the excise tax, only 20% of those without a high school diploma had found ways around the tax. Although increases in cigarette taxes have been shown to decrease smoking rates, the availability of untaxed or lower-tax cigarettes may undermine New York’s effort to curb smoking.  For details, click here.

Health plan gets burned after state's costliest race
Oregon’s Measure 50 was rejected by voters by a 3 to 2 margin. The plan would have changed the state’s constitution to increase cigarette taxes by 85 cents a pack, funneling the tax revenue toward uninsured Oregonians, including children. Tobacco companies spent a record $12 million ($24 per vote, according to tobaccofreekids.org) on their campaign against the tax. Those who voted against Measure 50 cited problems with accountability and sustainability of the program, as well as unfairness to smokers as their main issues with the tax. Read the rest of the article here, or click here to read the statement from Tobacco Free Kids.

Reynolds faces a new cigarette-tax battle: California is poised to follow Oregon with ballot initiative
Legislation similar to Oregon’s Measure 50 may follow in California. A $2 increase in cigarette taxes which would fund a healthcare plan will be presented in the state legislature by Democrats. Since 2002, 44 states, Puerto Rico, and the District of Columbia have increased their cigarette taxes, but in the wake of the defeat of Measure 50, cigarette companies may need to gear up to fund another anti-tax advertising battle.  Read more by clicking here.

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