It would also increase taxes on smokeless tobacco and cigars, generating $15 million for the state. (Administration officials said a $2 cigar that now costs $2.76 would jump to $4.46.)
As cigarette taxes hit their maximum and states lose revenue to SCHIP, they’re going to turn to other forms of tobacco. This will leave cigars especially vulnerable. They can’t be smoked quickly like cigarettes, making them much harder to consume under smoking bans. Nor do they enjoy the cartel protections of the Master Settlement Agreement.
Note also that Boston is scheduled to force its six remaining cigar bars out of business.
[Via the Stogie Guys.]