Proposed Tobacco Tax Would Be Tobacco Smuggler Employment Act of 2014
The state budget has a $5 billion surplus and Governor Jerry Brown proposed paying down $11 billion in state debt and stashing away revenue in a “rainy day” fund as a buffer against future emergencies. The existence of a surplus and sufficient state funds to reduce debt and establish a rainy day fund would seem to obviate any rationale for imposing yet another tax increase on one of the most intensely-taxed states in the Union.
But this is California, where an inexhaustible supply of rationales for raising taxes is one of the state’s great unnatural resources.
If proponents get their way, there will be an initiative to slap an additional $2 tax on tobacco products, with the money to be spent on cancer research and fund programs to discourage people from buying the products that fund the cancer research.
Wherein lays the irony of this type of taxation. The revenues are always dedicated to fund a worthy cause. Who can argue against funding cancer research? The initiative implicitly acknowledges that enough people will continue to purchase tobacco… Read More