The cigarette tax is a great example of Big Government hypocrisy on Big Tobacco. They claim to want to penalize smokers for the health-care costs they create through their nicotine addiction, but the funds will go primarily to health-care costs to non-smokers: children. In reality, they needed a big new revenue stream to pay for another giveaway, and decided to get it from smokers.
Nor is that the only hypocrisy. Most nanny-staters claim that they're acting in benefit of smokers by increasing taxes, as that will provide further incentive for them to quit using the product. However, if people actually did stop smoking, it would bankrupt government, which needs a large smoking tax base to provide billions in cash on state and federal levels. If we propose the reverse — if we outlawed tobacco rather than taxed it — would Congress eliminate S-CHIP? Of course not. They'd just look for something else to tax.
For instance, something like "thinging" could be taxed, as the Terry Jones tax collector character mused in a Monty Python sketch years ago. He never actually said what "thinging" was, but let your imagination run wild--and oh, it's not-safe-for-work. My view of government is that it is generally not capable of original thought--except when it comes to picking our pockets.
As for S-CHIP, or The State Children's Health Insurance Program, it was greatly expanded last month by legislation signed by President Obama. Smokers will pay an extra 62 cents for a pack of cigarettes beginning April 1. Many states, including Illinois, are considering hiking their cigarette taxes, as I explain in the accompanying post.
In autumn, tobacco leaves often turn a shimmering gold. But states, and the federal government, may learn that there is not a pot of gold in those tobacco fields.
Related post:
Marathon Pundit attacks higher cigarette taxes
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