Tobacco Industry Prepares for Tax Hike Impact

02/12/2009

Tobacco growers and companies across the country are preparing for how a major tax increase on their products could affect their industry. You may remember we told you how President Barack Obama signed a bill last week that would increase the federal cigarette tax April 1st. That extra tax money is set to extend health insurance to 4 million kids under the State Children's Health Insurance Program. Industry representatives say it's not clear exactly how much the 62 cent tax hike will hurt them. But, they are sure it will cut cigarette sales. Enditem