States cutting cigarette taxes

March 19th, 2011 - 1:06 am ICT by Aishwarya Bhatt  

Concord, Mar 18 (THAINDIAN NEWS) Some states in a bid to cut down on smoking have increased taxes on cigarettes. However in a counter move, other states have reduced their taxes on cigarettes in a bid to attract more smokers to shop for their cigarettes in the states.

In New Hampshire the proposed bill has already been passed in the state’s House by a vote of 236-93. The bill is expected to be passed in the state’s Senate. The proponents of the bill argue that cutting the taxes would attract more smokers to the state to buy their cigarettes thereby increasing the revenue to the state. Opponents say the bill will cost the state $16 billion in revenue every year.

The bill will take away 10 cents in tax from every pack of cigarette. The bill was passed last Thursday and it is due to be sent to the Senate where the bill has many supporters. Democrats are against the bill but Republicans are all for it.

Rep. Patrick Abrami, R-Stratham said that, “We have reached the tipping point. We are hurting our merchants, and we are losing sales on our borders.”

New Jersey and Rhode Island are also considering similar bills.

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