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Highest State
Cigarette Taxes
Massachusetts $1.51
New York $1.50
New Jersey $1.50
Washington $1.43
Rhode Island $1.32
Michigan $1.25
Hawaii $1.20
Pennsylvania $1.00

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Massachusetts State Cigarette Taxes

Ranked 8^th in the country for cigarette taxes, by tobaccofreekids.com, Massachusetts is certainly not the worst place for smokers to live; but it's not the best either. In many ways, being below the higher ranking neighboring states of New York, Rhode Island and Connecticut helps the economic outlook for the tax imposition. Not only does the state benefit from local smokers who purchase higher priced packs of cigarettes, but it takes in the additional income from those who cross state lines from beleaguered tax leading states. The downside is that local residents have very few options to turn to themselves to beat the higher costs in an area where the cost of living rates do not equal the higher cost of product.

The Massachusetts tax on a pack of cigarettes is $2.51, pushing the total retail price of a single pack of cigarettes to the $7 mark on average. If you include all of the ways governments take in money on cigarette sales (excise tax, settlement payments and sales tax combined), Massachusetts earns 59% profit on the every sale of a pack.

The high cost of cigarettes isn't all due to taxes. Cigarette companies also worry about waning sales due to higher prices, and raise their base price to cover expected losses.

Equal Justice?

As far back as 2008, when cigarette prices began their ascent, and government decided to target smokers, others have been asking: Is it fair? Meannewsdaily.com offered comments regarding the principle of taxing one group of people, and that is the gist of many anti-cigarette tax arguments. It's one thing for the government to use taxes to line their pockets, and decrease deficits, but another to aim their assaults at one group. In this case that group is smokers.

The tax doesn't cause an imposition on the entire populace of the area, just one segment, and that doesn't seem fair no matter what the proposed benefits are. It also begs the question, if the government, federal or local, can impose taxes on a certain segment of the population, who is next?

Being overweight is a definite health hazard, should the government impose a high tax rate on junk food (watch out Ice Cream lovers, and hold on to your Twinkies). Of course, even then, the tax could be more fair because although people who are overweight may be taxed at a greater weight, skinny people eat ice cream and Twinkies too.

Cash Flow Improvements

Regardless of fairness, there are financial benefits to the state from increasing the tax rate. In 2008 when the cigarette tax experienced it's most drastic increase in Massachusetts, it brought in $150 million to the budget. Health care experts believe that it also saved the state over $1 billion in health care costs from tobacco-related illnesses and deaths.

Economic Impact

In a time when the economy is already in turmoil, the additional taxes create even more trouble for beleaguered citizens. While some turn to black market efforts, or circumvention by traveling to other lower-priced areas, many do quit to prevent paying the high prices.

Help for Smoking Cessation

The hard part for those seeking to quit in order to pay less in taxes is that smoking is more than just a bad, dirty and deadly habit, it is an addiction. Addictions are hard to break on your own. There is help out there, however. State-wide help centers in local hospitals, toll-free help lines, and online organizations such as the American Heart Association offer smokers help in quitting their smoking addiction.

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Actually, Kents and Newports produced for the overseas market aren't made in England by BAT. They are manufactured by BAT's subsidiary, Brown & Williamson Tobacco Co., at a plant in Macon, Ga.

Now, puff on this: R.J. Reynolds Tobacco Co. of Winston-Salem recently bought Brown & Williamson from BAT. Brown & Williamson and R.J. Reynolds will become subsidiaries of a new company called Reynolds American Inc., which will be based in Winston-Salem.
 

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