Despite a surplus of more than $1.3 billion in tax revenues for 2006, lawmakers in Columbia are looking to increase taxes on cigarettes by 45 cent a pack. Not satisfied with nearly $30 million dollars in cigarette tax revenue for 2006, policy makers plan to roll out a regressive tax that will cost the state hundreds of jobs and millions of dollars in the sales of both cigarettes and related products. While cigarette taxes are unlikely to substantially decrease smoking, hikes will likely decrease future state revenues by driving sales to out-of-state or to Internet and illicit vendors.
By South Carolina Policy Council
Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.
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