All For It:

• Significant increases in the tobacco tax rate decreases the overall level of smokers, and makes for a healthier state and country, and thus an overall healthier world.

• Most states, that significantly increase their cigarette tax rate enjoy an increase in the state tax revenues, despite the anticipated decline in sales volume due to the aggregate reduction in state smoking levels, because the revenue increase is proportionately large enough to allay any fears about the loss in sales volume.

• State’s can institute certain policies and deterrents to minimize the amount of revenue lost due to tobacco smuggling and internet sales.

Nay Sayers:

• Tobacco taxes tend to apply to be a regressive or discriminatory tax in the sense that the bulk of the tax payers will be middle to lower class, rather than of the upper class.

• While increasing the tobacco tax generates additional revenue for the states, it does not compensate for the merchants and distributors who lose revenue due to loss in sales volume.

• Many tobacco enthusiasts feel that smoking is a personal choice, and shouldn’t be restricted or influenced by the government. It appears that most tobacco taxes are geared more towards decreasing the amount of smokers than towards increasing the state revenue.