Up in smoke

Taxes are about to increase over $200 a year to the average pack-a-day cigarette smoker. The new tax is buried into the SCHIP bill. The President is signing the bill into law about now.

Who’s the average pack-a-day smoker? I’m betting it’s not the upper-class white guy hanging out in business-casual style.

Which begs the question (a question that in fact came up during today’s White House press briefing), is this income, $0.61 per pack of cigarettes, a reliable source of funding for all that new health care just purchased?

Cigarettes will be approaching $6 a pack. Our pack-a-day smoker is looking at $2,000 or so a year. With 2 smokers in a household on Wisconsin’s average household income, that’s 10% after tax blown up in smoke. ($50,578 assuming 25% state and local taxes.)


  1. Speaking of assumptions, it is an assumption that all those cigs will be purchased on US soil.

    Remember the internet?

  2. Now wouldn’t that be illegal by now?

  3. No. You can purchase them anywhere you like–but you have to declare the purchases for State tax purposes.