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1 Patrick Fleenor, The Effect of the Federal Cigarette Tax Increase on State Revenue 1 (2009)

handle is hein.taxfoundation/ffbggxz0001 and id is 1 raw text is: FFISCAL
April 2009              FACT
No. 166                 FACT
The Effect of the Federal Cigarette Tax
Increase on State Revenue
By Patrick Fleenor
Today the federal cigarette tax will rise from 39 cents to $1.01 per pack. The proceeds will help
fund expansion of the federal State Children's Health Insurance program. This program provides
federal matching funds to states to assist them in providing health insurance to families and
children. The SCHIP program is targeted at families with modest incomes above Medicaid
eligibility limits.
Of course what the federal government gives with one hand it takes with the other. A $6.3 billion
increase in the federal cigarette excise will reduce the disposable incomes of residents in the states.
Table 1 shows that this reduction ranges from $581 million in California to $10.8 million in the
District of Columbia.
Table 1
Increased Federal Tobacco Excise Payments!
,.by State, Resulting from the 62-cent Federa
Cigarette Tax Hike
Calendar Year 2010
Total                     $ 6,340,750,000
i~ i o r .   . . .. . .. . .. . .. . .. . .. . .. ... . .................. --- -- --- -- --- -- --- -- --- -- --- -- --- -- --- -- --
:Alabama            .        109,978,857
'Alaska                      $15,600,214i
Arizona                     $134,852,0311
Arkansas                     $67,864,6891
California                 $581,127,778i
Colorado                   $104,058,146
Connecticut                  $58,536,5812
,Delaware                    $17,692,891i

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