Hey, States, Want to Increase Your Tax Revenue? Lower Your Cigarette Taxes!!!

Here’s the bottom line:  Due in large part to Obama’s SCHIP law, cigarette taxes are astronomical.  Because of this, die-hard smokers are forced to save their money by buying cigarettes from the black market.  Therefore,  the states are no longer collecting a large part of that revenue they were expecting from cigarettes.

So, if the states want to collect more revenue from cigarettes, they need to lower their cigarette taxes.

It’s a classic Laffer Curve:

NH Cig Tax Revenue Beats Estimates Following Tax Cut

Breitbart BigGovernment

April revenues have been totaled in New Hampshire, and there is more good news for advocates of last year’s cigarette tax cut. In the fourth month of the year, revenues from the tax were up and cigarette tax revenue continues to outperform estimates.

This follows news that in February, the cigarette tax had brought in about $1 million more than estimates had projected. Reports also indicated that in January, revenue from the tax had exceeded estimates.

New Hampshire’s revenue picture otherwise looks somewhat bleak, however. According to the Union Leader:

The big drag on April, which is the second-biggest revenue month of the fiscal year, is the business-profits tax, which Friday was $14.4 million below expectations. That was somewhat offset by the business-enterprise tax, which was $6.3 million more than anticipated, but still leaves business taxes about $8 million below estimates.

Overall, with two business days to go, revenues were $12.4 million below projections for April.

Expect a debate to ensue about how to close this gap moving forward, with Republicans defending policies like the cigarette tax cut and Democrats arguing for tax increases.

Explore posts in the same categories: Myth Busting, Obama Sucks

One Comment on “Hey, States, Want to Increase Your Tax Revenue? Lower Your Cigarette Taxes!!!”

  1. Big Frank Says:

    We all know that any government needs revenue to function, however no one ever seems to know how much is enough. If we ran our household budgets like our ‘esteemed’ government representatives run fiscal policies, we would soon be broke and out in the street. Excessive taxation is basically confiscation of the hard earned fruits of the labor of those who actually ‘work in a productive manner’. Those in our government look upon us who work as a means of revenue not citizens building an economy that strengthens our nation. Damn it it,s our money and they can’t stop borrowing, then squandering it on foolish BS and pissing it all away, putting us on the path to economic ruin.

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