New Hampshire and Other States Move to Cut Tobacco Taxes to Increase Sales

There has long been an ironic relationship between states and tobacco. While insisting that they are raising taxes on tobacco to combat smoking, states have long been addicted to the revenue. Now, some states lowering taxes to encourage more smoking to generate more revenue to deal with budget shortfalls.


New Hampshire is the latest such state. Facing lower taxes in Maine, Vermont and Massachusetts, the legislators want to get in on the profits from smoking. A bill would cut the rate 10 cents to $1.68 per pack.