Sunday, March 13, 2011

Not if They Quit

Cigarette taxes will soon be going up. Washington is planning to more than double cigarette taxes from 39 cents per pack to $1.01 a pack. The increased tax is expected to bring in $33 billion over the next four and a half years. One problem in the move that Washington has not considered is that if the tax succeeds in reducing smoking, that $33 billion it anticipates collecting will evaporate. If the tax increase works, fewer people will smoke which in turn means that they will no longer buy cigarettes. If they do not buy cigarettes, they will not pay the tax and that $33 billion the government anticipates the higher taxes will bring in will not appear.

The extra revenue the government hopes to bring in through the tax increase has already found its way into the budget. Plans are currently being made on what it will do with the extra money. But if fewer people smoke, the money that the government anticipates having in the future will not be there. The taxes will not be paid if people don't buy cigarettes. The government cannot have it both ways. They cannot rely on increased revenue by raising taxes on cigarettes while trying to get people to quit.

As a smoker, the government has given me a strong incentive to quit. If I succeed, it will not be because of cost or health concerns, but out of spite. Perhaps the best reason of all to quit is to help put all of the nags who are employed to agitate against tobacco out of work. If I get a few more years above ground and cheat the government out of some tax money for doing so, that will just be gravy.

Once the government gets rid of the smokers and the chewers they are going to have a hole in their budget. They will have to find something else to tax. There is no telling what that might be. You can be confident that whatever it is, it will be something that tastes good or is fun to do.

First they came for the smokers but I didn't care because I was not a smoker. Then they came for the obese but I didn't care because I was not obese.

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