November 29, 2008
Ocala Star-Banner¬ (FL) Talks About Sin Taxes with Chief Economist Patrick Fleenor
"Budget Blues Lead Lawmakers to Eye Raising Cigarette Tax"
By Joe Follick
Raising "sin taxes" on things like tobacco, alcohol and gambling has been a treasured pastime for many states, said Patrick Fleenor, chief economist for the non-profit Tax Foundation in Washington.
"It's the easiest tax to raise because there's so little push-back on it," he said of the cigarette tax.
But Fleenor said raising the tax creates as many problems as it solves.
He cites studies that show the cost of providing health care and other services to smokers is equivalent to a little more than 35 cents per pack of cigarettes.
"Any tax in excess of that is unfair for a number of reasons," he said, though the U.S. Centers for Disease Control has estimated a per-pack health cost of up to $10.
A cigarette tax increase will fall disproportionately on low-income Floridians who are more likely to smoke and would pay a far higher percent of their income than wealthier Floridians.
And Fleenor said higher taxes lead to Internet sales and smuggling operations that increase demands on law enforcement.
