March 4, 2008
Higher Tobacco Taxes Hurt Business
Kansas is currently considering a cigarette tax increase proposal of 50¢ per pack followed by 4 cent increases in each of the subsequent 5 years. If passed, the Kansas cigarette tax would rise from 79¢ to $1.29 per pack in 2008 — a rate 658% greater than the 17¢ per pack tax in neighboring Missouri. It is well known in economics that consumers will seek lower priced substitutes if they are readily available.
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