When states are faced with a budget deficit, the fiscally prudent solution is to tighten spending and cut waste before increasing taxes. Florida is currently facing a $2.3 billion budget gap, and State Representative Jim Waldman is calling for a $1 per pack jump in the state cigarette tax.

Representative Waldman is trying to fool voters by calling the tax hike a ‘user fee,’ knowing that tax hikes are unpopular.

FreedomWorks opposes increasing taxes, especially in a recession. Cigarette taxes are historically bad public policy and do not bring in the anticipated revenue as smokers either cut back, cross borders, buy over the internet, Indian Reservations, or turn to the black market.

Cigarette taxes are also regressive and disproportionately hurt poor families’ budgets. Small business owners, the backbone of our economy, would also be devastated by the loss of a critical revenue stream.

FreedomWorks issued a call to action today to its 49,000 members in Florida, asking them to contact the state legislature and Governor Crist. FreedomWorks volunteers will deliver the message that this tax increase should be defeated, and the size of the bloated state budget should be reduced instead of raising taxes.

FreedomWorks Chairman Dick Armey sent a letter to Governor Crist on December 15 explaining his opposition to the tax hike. In the letter, Armey explained:

“Just like almost any other tax hike, cigarette taxes harm small local businesses the most. Often, people buy their cigarettes across state lines, on the internet, or on the black market – further draining the local economy. Convenience stores get approximately 34 percent of their in-store income from cigarette sales, and those profits will soon plummet.”

FreedomWorks President Matt Kibbe commented:

“It is unfortunate that in tight budget times politicians resort to gimmicks to fill budget holes created by their inability to rein in spending during the good times. Governor Crist should be applauded for holding the line against increasing the Florida cigarette tax, and should continue to do so. It would send a strong message to the legislature that as Floridians live on a budget reflecting hard times, so should government.”