Starting April 1, 2009 the tax on cigarettes will increase 158% from 39 cents per pack to $1.01 per pack. The expected revenue windfall is slated to fund the health care entitlement known as SCHIP. I have 3 questions for the Obama administration.
1. If smokers bring their W2 showing that they make less than $250K annually to the store with them when they purchase cigarettes, can they receive an exemption from this tax increase?
2. What happens if a large number of smokers decide to quit as a result of this punitive legislation and the federal government's windfall falls short of projections?
3. What additional taxes will be created to make up this shortfall and will those that make under $250K annually be exempt from those new taxes?
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