There has been a report that in oregon they are thinking of raising the cigarette tax to pay for medical aid for uninsured kids. Good idea when you first look at it but delve deeper and a few problems raise their heads.
Reports i have seen say that the poor make up the majority of smokers, and as they probably can't afford medical insurance or can afford the basic cover, then the extra money they pay for smokes is going to eat into their budget. Ok its easy to say they shouldn't be smoking but when you are low down the order you have to have some sort of pleasure.
So where else can they raise the revenue but raise from people who can afford it? extra income tax probably will not work because the people earning at the level that you are taxing can probably afford to hire an accountant to find a loophole, and pay less. Plus if they make up a sizable portion of the voters then raising income tax at certain levels is a vote loser.
What ever they suggest it will always have a downside in some way, either affecting the people you are trying to help or the voters you are relying to stay in power. Perhaps generating income from other services i.e fitness centres, car parks .... might raise enough income to cover the medical bill. I just hope they don't try and go the way like London and the UK has with the congestion charge in London and council tax all over the UK.
