FreedomWorks Applauds End to Iowa Cigarette Tax Hike

FreedomWorks Iowa is pleased Gov. Vilsack’s proposed 200 percent tax hike on cigarettes that would have cost Iowans $129 million a year has failed to move though the Iowa legislature. State House Republicans, lead by Speaker Christopher Rants, stopped the tax increase because it would hurt small businesses and create future budget problems by relying on a declining revenue source.

Cigarette tax increases are notorious for pushing customers into the black market, which hurts numerous small business owners from grocers to restaurateurs. Instead of paying an onerous $1.16 a pack, Iowans who live near a border will shop in Illinois, Minnesota, Nebraska, South Dakota, or Wisconsin—all of which would have lower state cigarette taxes. As a result, the revenue that politicians think a cigarette tax hike will generate rarely materializes, and small businesses are hurt at the same time.

Over the recent weeks, Freedomworks’ small government activists have engaged in a grassroots campaign to raise public awareness on the issue and reached out to legislators through phone calls, letters, and emails.

FreedomWorks Mid-West Regional Director Cameron Sholty commented, “Iowa House Speaker Christopher Rants courageously stood up against a regressive tax. Smokers should not have to foot the bill for overspending in Des Moines. FreedomWorks supports elected officials who concentrate on ways to cut spending, not dream up new tax hike schemes that end up hurting small business.”

FreedomWorks is a grassroots organization with over 800,000 members nationwide and more than 7,000 in Iowa dedicated to lower taxes, less government, and more freedom.