Cigarette

It is true that the law of supply and demand dictates that a higher price means a lower quantity is demanded, but funding S-CHIP with Federal Cigarette Tax Increases is a Poor Tax Policy. A cigarette tax increase hurts the poor more than virtually any other way of raising money. High Cigarette Taxes Encourage Smuggling and Associated Crime.

It is often said that cigarette taxes should be increased because government needs revenue. Such an argument is possibly the worst used by advocates of higher cigarette taxation. Why not tax coffee or spinach or impose a tax based upon the number of blades of grass in a taxpayer’s yard? Just because the government needs revenue to fund some general spending program that has broad benefits doesn’t mean that an arbitrarily selected group of people should pay the tax. o_O

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The rise in cigarette tax for the health of our children.
I’m non-smoker.

Unfortunately, the people who proposed this legislation understand supply and demand about as well as a fish understands trigonometry.

When the cost of cigarettes goes up, people smoke less or quit smoking altogether. Then, the money that was supposed to go to health-care is gone. What do you think will be Congress’s response? Raise taxes on everyone, of course!

This reminds me of another piece of legislation here in Florida. The govt wasn’t making enough money on the toll roads so they decided to raise the price of the tolls. The problem is that now, nobody uses the toll roads because they are too expensive.

When most people stop smoking, how is the non-existent tax money supposed to pay for anything?

This legislation is counter-intuitive and it doesn’t make an ounce of sense.

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