CCAGW URGES IDAHO LEG. TO OPPOSE TAX INCREASES

(Washington, D.C.) – Today, Tom Schatz, president of the Council for Citizens Against Government Waste (CCAGW), sent a letter to the Idaho State Legislature urging its members to oppose House Revenue and Taxation Committee Chairman Dennis Lake’s (R-28) plan to increase the state’s cigarette tax by $1.25 per pack.  The letter reads in part:

“Raising cigarette taxes, especially during a weak economy, will slow business and negatively impact state retailers. According to the National Association of Convenience Stores, cigarettes are the top revenue generator, accounting for 35.9 percent of in-store sales nationwide. Additionally, history has shown that raising excises taxes does not produce projected revenue, as such tax increases drive purchases across state lines or to untaxed or lower-tax venues, like Native American territories and the Internet. Smokers could save $1.75 per pack on average by purchasing cigarettes in neighboring Wyoming.
 
“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 Idaho already pay an average of $4.99 per pack of cigarettes. Increasing the excise tax by $1.25 per pack would raise the average price of a pack of cigarettes to $6.83 per pack, a 37 percent price increase.
 
“CCAGW urges all members of the Idaho State Legislature to oppose Rep. Lake’s tax increase proposal. Lawmakers should be focused 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 Idahoans 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.