(Washington, D.C.) – Today, the Council for Citizens Against Government Waste (CCAGW), urged lawmakers in the Tar Heel State to cut wasteful spending instead of raising state excise taxes.  A recent proposal introduced by Rep. Jennifer Weiss (D-Wake) and Sen. William Purcell (D-Scotland) would raise cigarette taxes by $1.00 per pack.

Since fiscal year 2000, federal and state governments have increased cigarette excise taxes 110 times.  Supporters have argued that raising cigarette taxes would generate about $300 million in additional tax revenue that could be used to fund education and other programs.  However, history has shown that raising excises taxes does not produce projected revenue, as such tax increases drive purchases to untaxed or lower-tax venues, like Native American territories and the Internet.  Of the 57 excise tax increases that states implemented between 2003 and 2007, only 16 met or exceeded revenue targets.  Additionally, raising taxes will only cement current wasteful government spending and discourage agencies from undergoing critical review and reforms.

The Congressional Budget Office has reported that cigarette excise taxes are the most regressive type of excise tax and disproportionately impact the poor and those living on fixed incomes.  Smokers in North Carolina already pay a $0.45 per pack tax on cigarettes, and raising the excise tax to $1.45 per pack would force North Carolina residents to shoulder an unfairly high tax burden.  

“CCAGW urges all members of the North Carolina House of Representatives to oppose any proposal that seeks to raise state excise taxes,” said CCAGW President Tom Schatz.  “Lawmakers should focus on addressing the state’s budget shortfall by cutting taxes and wasteful spending instead of forcing constituents to hand over more of their income.  It’s time to give hard-working North Carolinians a break.”

The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.