Tobacco, Taxes, Government- A Team?

Can governments afford to give up their addiction to cigarette taxes? That is the issue this New York Times article raises.

Duncan


....the government has become a financial stakeholder in smoking, some would argue, even as public health officials warn people about its deadly consequences. Smoking declines as cigarette taxes increase, but a core group of smokers hang on to the habit.

The reliance of government coffers on the taxes smokers pay, and on the tobacco settlement money, essentially provides a financial cushion for state governments and could be viewed as a government guarantee for the survival of the tobacco industry. Would politicians shut down an industry that supplies so much money?



http://snipurl.com/3r6e2