Tobacco Tax Hits Smokers Where it Hurts
By: Laura Kellerman/RNS
Updated: March 31, 2009
Smokers will be taking a hit when they buy cigarettes as a new federal tax on tobacco takes effect, going for 39 cents per pack to $1.01.At least one manufacturer has already increased prices by 71 cents a pack on its products, while another boosted the tab for a pack by 44 cents.
The tax officially takes effect on Wednesday. It's meant to finance expansion of a health insurance program for children.
The federal tax on chewing tobacco also increases from 19.5 cents a pound to 50 cents a pound.
Many states across the country are also raising state tobacco taxes at the same time. In Texas, the cigarette tax is $1.41 per pack. That means smokers in Texas are paying a tax of about 41 percent on their cigarettes.
