TMCnet News

All Taxpayers Pay When Politicians Raise Tobacco Taxes for Bigger Government, Says Americans for Prosperity
[November 17, 2006]

All Taxpayers Pay When Politicians Raise Tobacco Taxes for Bigger Government, Says Americans for Prosperity


(Comtex Business Via Thomson Dialog NewsEdge) WASHINGTON, Nov 17, 2006 (U.S. Newswire via COMTEX) --The national free- market grassroots group Americans for Prosperity (AFP) today called on state lawmakers to reject a proposal from Indiana Gov. Mitch Daniels to raise the state's cigarette taxes by 46 percent. AFP Executive Vice President Michelle Korsmo warned Indiana taxpayers that many states have hiked government spending on faulty assumptions, then have to raise taxes on all taxpayers when those assumed revenues don't materialize. The citizen group plans to launch a grassroots campaign in December against the tax hike, which will include direct mail, e-mail alerts, a letter- writing campaign and likely paid media.

"The citizens of Indiana shouldn't allow themselves to be sold a lie -- the $95 million tobacco tax hike will do little to curb smoking and much to feed politicians' addiction to our tax dollars," said Korsmo. "Most tobacco users will find a way to avoid the higher tobacco tax and when expected tax revenues fail to materialize, a new tax burden will be imposed on all Hoosiers to pay for Indiana government's spending spree."

Daniels' proposal would increase Indiana cigarette taxes by 46 percent or 25-cents-per-pack. Americans for Prosperity contends that it is fiscally irresponsible to expand the size and scope of government based on a declining source of revenue such as a cigarette tax.


"The logic behind this tax hike simply doesn't make sense. If people really do quit smoking due to these increased cigarette taxes, won't the state bring in less money for the myriad of new government programs it has just created?" Korsmo asked. "Whose pocket will be picked next to pay for the state government's new spending?"

-----

Americans for Prosperity (AFP) is the nation's premier grassroots organization of citizen leaders working at the state and local level and committed to advancing every individual's right to economic freedom and opportunity. AFP educates and engages citizens in support of restraining state and federal government growth and returning government to its constitutional limits. For more information, visit http://www.americansforprosperity.org.

http://www.usnewswire.com

Ed Frank or Annie Patnaude, 202-349-5880,
both for Americans for Prosperit

Copyright (C) 2006, U.S. Newswire

[ Back To TMCnet.com's Homepage ]