US: AWMA Works to Oppose Obama''s Tobacco Tax Hike

Source from:  American Wholesale Marketers Association (AWMA)  04/12/2013

The President's 2014 Budget Plan states: "The investments in early childhood education and development on the mandatory side of the Budget are fully financed by raising the Federal tax on cigarettes from $1.01 to $1.95 per pack. In addition to financing important investments in early learning, the proposed tobacco tax increase would have substantial public health benefits, particularly for young Americans. Researchers have found that raising taxes on cigarettes significantly reduces consumption, with especially large effects on youth smoking."

AWMA plans to bring this issue to our legislators in Congress during the annual Day on the Hill event May 15 and 16. What the President fails to mention in his budget is the fact that these increases in cigarette excise taxes are leading to an increase in contraband and illegal cigarette activity. Not only is this tax regressive, it also means the federal government, states and localities will lose out on much-needed tax monies because of the corresponding increase in illicit trade as a result. Enditem