Indiana Governor Mitch Daniels has shown bold leadership and a commitment to the free market in the past. Last year Gov. Daniels championed increased competition  in the market for video programming that helped reduce government barriers to entry in the traditional cable TV marketplace. FreedomWorks was proud to support Gov. Daniels in his efforts, and thanks to the hard work of activists like you, we executed a successful campaign of phone calls, emails, and face-to-face visits with state legislators that helped push his telecom reform initiative over the top. Today, consumers in Indiana are seeing the benefit of increased competition and the state economy is expanding from the investments that companies are making in order to offer video programming services.

Unfortunately it seems Gov. Daniels has turned to drinking some "backsliders wine" this year and is looking to increase taxes in order to fund his new health care plan. Specifically, Gov. Daniels is calling for a $0.25 per pack cigarette tax hike that would not just punish smokers, but all Indianans and the state economy as a whole.

Take Action Now and Tell Governor Daniels that you oppose tax increases!

While smokers may seem like easy targets for those looking to raise revenue, excise tax hikes like this one end up hurting small business owners such as convenience store and tavern owners, who see sales drop due to smokers buying cigarettes online or from nearby states with lower tax rates like Kentucky.

Because cigarette taxes have historically been an unreliable source of revenue, government programs that the tax was SUPPOSED to cover wind up under funded and lawmakers scramble to make up the difference with other tax hikes or fee increases; the bottom-line is taxpayers wind up footing the bill as usual.

Although Indiana has a balanced budget now and the state is projected to collect over $1.5 billion in revenue over the next two years, the cries still come for more taxes. In fact, Gov. Daniels' proposed tax hike is only one idea floating around the state capitol in Indianapolis. State Representative Charlie Brown of Gary wants to go even further, raising the tax by $1 or even $2 per pack!

Indiana politicians need to understand how to live within their means and realize that government does not have a revenue problem, it has a spending problem. When times get tough for hard-working families in Indiana, they have to rein-in spending and pinch pennies. Why shouldn't families expect the same from their government?

Believers in lower taxes, less government, and more freedom should not assume Gov. Daniels' mind is made up on this issue. Again, as he demonstrated last year by passing state-wide telecom reform, the governor has shown a commitment to free-market principles in the past. He has quite simply strayed on this issue and as a true economic conservative you have an opportunity to make him reconsider.

Contact the Governor today by using FreedomWorks' automatic email system and tell him to drop his plan for a cigarette tax hike!

Dick Armey
Chairman
FreedomWorks