Non-smoking Kentuckians who think the recent thirty cent tax increase in Frankfort and the sixty two cent hike courtesy of Congress won’t affect them just haven’t run the numbers.
The Tax Foundation did, though. Using a Congressional estimate that the federal hike will lower purchase of tax-paid cigarettes (hello black market!) will fall 10% in the fiscal year starting in June, it looks like the federal tax alone will cost Kentucky almost $46 million in cigarette taxes.
More details here.
Good thing the federal tax was used to justify making government bigger, right?
If Kentucky’s tax increase has any kind of similar impact, the legislature will have to hurry back in to fix the fiscal problems caused by their last fix.