State Chapter: California

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State Blogs

By Abraham Hamadeh on August 01, 2011

In the Shadow of the Senate: A New Tax Emerges

In the midst of chaotic negotiations between the Senate and the House over the debt ceiling, Senator Dick Durbin (D-Ill.) had another priority: introducing the Main Street Fairness Act, a new quasi-federalized Internet sales tax.

State News

By Web Team on October 30, 2006

Prop. 86 a Tax-the-Poor Scheme California Focus

Hospital industry singles out smokers to enrich itself.

If passed by the California electorate Nov. 7, Proposition 86 would almost quadruple the current tax on cigarettes to $3.47 a pack and would stand as perhaps the most ill-conceived tax increase of all time, although, to be fair, there's a lot of competition for that distinction.

The "Tobacco Tax Act of 2006" is a creation of California's hospital industry, which wrote the initiative in such a way that it will receive about 40 percent of the $2.1 billion a year the higher tax is expected to generate. Whether that figure is realistic is a point we will get to a little later.