New Data Suggests Cigarette Taxes a Risky Revenue Source

» New Data Suggests Cigarette Taxes a Risky Revenue Source - Big Government:

Back in 2009, the Reason Foundation identified that since 2003, cigarette taxes had been increased 57 times around the U.S., but that 68 percent of those hikes failed to result in projected revenue increases.

With more people giving up, however, experts say enhancing revenues via raising cigarette taxes could get tougher.

In addition, states that do hike taxes could see an increase in cigarette smuggling, which deprives the state in question of revenue it had anticipated.  This is a problem experienced by New Jersey, which a 2009 report obtained this week by Newark’s Star-Ledger shows is experiencing significant challenges in collecting in the revenue it needs to bank in order to get the full benefit of its $2.70 per pack cigarette tax.

But the health fascists must be jumping for joy,after all this is sort of what they were hoping would happen.
Of course the increase in smuggling is an unintended consequence but the government often acts without thinking about what it will do to them,which is no real surprise.