Monday 15 February 2016

Feldman: Why Indiana should raise cigarette tax

House Bill 1001 would increase the gasoline tax by 4 cents a gallon and the cigarette tax by $1 a pack. The newfound money would be used to pay for much-needed improvements to Indiana’s highways and bridges. Can it possibly make it through the General Assembly, and will Gov. Mike Pence, who favors a plan that would temporarily pay for the needed infrastructure repairs without raising taxes, sign such a bill?

The uncertainty arises from the fact that lawmakers generally loathe increasing taxes, especially in an election year. However, understand that 77 percent of Hoosiers support increased tobacco taxes as a revenue generator.

Indiana has not raised the cigarette tax since 2007, and our tax of 99.5 cents per pack is well below the nearby states of Illinois ($1.98), Michigan ($2), Ohio ($1.60), Wisconsin ($2.52), and the national average of $1.60. For the full article click here



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