Friday, August 15, 2008

Fiscal Flameout in the Free State

The folly of financing government by taxing smokers is proven yet again

Categories: Maryland, Nanny State

Last year, the Maryland legislature doubled the cigarette tax to $2 a pack to pay for expanded health-care coverage, but eight months later, cigarette sales have plunged 25 percent and the state is in fiscal distress again. In New York City and State, tobacco taxes have been raised so many times that the retail cost can exceed $9 a pack -- about double the national average. Members of Congress should take note, writes The Wall Street Journal.

Democrats are now planning a $35 billion children's health program expansion funded by a 61-cent per pack tobacco tax increase, justifying the new levy as a "sin tax."

Comments the Journal: "OK, but if Americans don't start sinning a whole lot more, states and Uncle Sam are going to go broke."