Cigarette Tax?

by Jason Allentoff

In the proposed fiscal budget for 2010, Governor Jon Corzine plans to increase the cigarette tax because he believes it will generate a sizable chunk to fill in some gaps. The Center For Policy Research says otherwise.

Governor Corzine insists his plan to raise the tax by 12.5 cents would generate 26-million-dollars but the Center claims the hike would do the opposite. CPR President Gregg Edwards says the tax will end up costing the state millions and hurt small business owners. He cites an increase in the tax back in 2006 when the state lost 22-million-dollars.

In addition, Edwards feels any hike will end up increasing the black market sales of tobacco in neighboring states.