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The Future of the Cigarette Tax

Jeffrey Katz

Last month President Obama proposed nearly doubling the federal tax on cigarettes from its current rate of $1.01 per pack to $1.95. CNN Money reports the increased revenue, estimated at $78 billion/10 years, would be used to fund childhood education and reduce smoking rates.
If implemented, the administration will have raised the cigarette tax by more than 5 times its pre-Obama level of $0.39 per pack.

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