Nov 042009
Its just like the minimum wage. There s a federal standard but each state have a different tax. Please help
There is no federal standard. ALL cigarette taxes are STATE taxes. You may as well ask why state income tax rates are different in each state. The only meaningful answer is: Because each state passes its own laws.
Some state officials are beholden to tobacco companies for funding and don’t want to tax them too much.
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I believe here in AK we use the tax to help fund projects.
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why is income tax different in each state? why is gas tax different? why why why,, it just is,,
it’s what makes this country so good,, you can pick a state with cigarette tax you like best and live there,,,,
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There is no federal standard. ALL cigarette taxes are STATE taxes. You may as well ask why state income tax rates are different in each state. The only meaningful answer is: Because each state passes its own laws.
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Cigarettes are taxed at federal, state and in some cases, local levels – like in Alabama. Cigarette taxes, (not counting sales tax applied at the time of the transaction – creating a taxing of the taxes by the state) are now more of the cost of the product than profits derived from any company in the distribution chain. Taxes are as much as 60% of the retail price, depending on where you are. States set their tax rates according to budget needs, and as all are in economic turmoil, they look to increase cigarette taxes to help close those deficits. As an example, Wisconsin just increased their taxes $10.00 per carton – at once! That increases Wisconsin’s rate to over $20.00 per carton. Uncle Sam gets another $10.00 per carton, so there is $30 bucks, or half of the retail price in taxes. Then when you buy a carton in Wisconsin, they apply sales tax, so there’s another $3.60 or so added. Some states do have lower rates than others, like Kentucky, Virginia, North and South Carolina, and as you can imagine, it’s because that’s where tobacco is grown, and cigarettes are produced. But, as I said above, they are increasing their taxes exponentially to help balance their budgets