One group belives that raising tobacco taxes during a recession as a great opportunity to get smokers/tobacco users to quit. The other group is busy counting the money for children’s health care.
I doubt they both can be right!
Some policy analysts have questioned the wisdom of boosting tobacco taxes to finance health care for children. They argue that the fate of such a broad program should not depend on revenues derived from a minority of the adult population, many of whom have low incomes and are hooked on a habit. The tobacco industry is also warning that the steep increase will lead to tax evasion through old-fashioned smuggling or by Internet purchase from abroad.
But smoking control advocates such as Lindblom say tobacco taxes should be even higher. “There’s a lot of room to go after cigars and smokeless,” he said. “We are certainly hopeful that health care reform will include some more increases.”
Who will pay for children’s healthcare as the tax revenue falls?
