Iowa Governor Chet Culver is proposing a $1.00 per pack cigarette tax increase. The current tax is $0.36 and will go to $1.36 if the plan goes through.
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 Missouri.