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Economy / Taxes

Cutting Cigarette Taxes for Budget Health

By Christine Harbin on Mar 30, 2011

While lawmakers in the Show-Me State want to hike the cigarette tax rate, lawmakers in New Hampshire, Rhode Island, and New Jersey have proposed cutting theirs.

I wonder whether they caught my recent op-ed about cigarette tax hikes. I argued that raising the rate would not solve Missouri’s budget woes. Instead, it would cause people to buy their cigarettes in other states that have lower taxes. Cigarette tax hikes are no quick fix.

In New Hampshire, they want to cut the cigarette tax by 10 cents, to $1.68 per pack. In New Jersey, even more, by 30 cents, to $2.40 — and, in Rhode Island, by a whopping $1 a pack to $2.40. All are still way above Missouri, which, at 17 cents per pack, has the lowest cigarette tax in the nation.

I’m not pro-cigarette (my Dad’s a cardiologist and very anti-cigarette), I’m pro–low taxes. Cutting taxes on cigarettes and other “sin goods” will promote economic activity and personal liberty in the state.

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Christine Harbin

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