Lawmakers in Kentucky are considering a plan to increase the state cigarette tax by $0.70 per pack.  That would make a pack of cigarettes in Kentucky cost more than $5.00 and would bring along with it a host of unintended consequences.

Too often, lawmakers consider smokers a source of quick cash – they think it’s easy to after this group of taxpayers without making too many people upset.  Instead of doing the hard work of cutting spending and encouraging growth in their state, Kentucky legislators are going to try to wring more money out smokers.

Those tax hikers are going to be pretty disappointed, however.  Tax hikes like these usually don’t bring in the projected revenue, as more and more smokers are forced to purchase cigarettes from nearby states with lower taxes or through the black market.  Not only will the money not be there, but in the meantime, it could hurt a lot of families and businesses.

Cigarette tax hikes are regressive, burdening poor household disproportionately and leaving less money for necessities and other items.  This will make Kentucky businesses suffer, especially small businesses like convenience stores where cigarette sales make up over 34% of in store sales.

States like Kentucky really need to drop the cigarette tax habit.  Smokers aren’t a piggy bank you can always shake more money out of.  And after smokers, where will lawmakers go next for their funding fix?  Can other so-called “sin taxes” be far behind on candy, soda, fast food, and even bottled water?

Take Action and tell your state legislators that Kentucky needs long term growth, not unfair shake-downs.

Sincerely,

Dick Armey
Chairman
FreedomWorks.org