The New Federal Tobacco Tax: Who Loses?


 

Publication Date: August 2009

Publisher: National Center for Policy Analysis (U.S.)

Author(s): David Weeks

Research Area: Economics

Keywords: tobacco tax; tobacco

Type: Brief

Abstract:

The recent expansion of the State Children's Health Insurance Program (S-CHIP) was funded by an increase in federal excise taxes on tobacco products. Congress increased the federal tax on cigarettes by 61 cents per pack and raised the tax on other tobacco products, with the goal of equalizing the tax per pound of tobacco.