Friday, October 31, 2008

Kentucky Cigarette Tax Increase?

Should the Kentucky General Assembly and Governor approve an increase in the current .30 per pack cigarette tax?

Would increasing the cigarette tax substantially weaken Kentucky’s current regional tax advantage with many boarder states?Kentucky currently enjoys a lower tax advantage with other states. Would the revenue from a Kentucky cigarette tax increase be enough to offset any decrease in sales from the approximately 38% of Kentucky cigarette sales volume from out of state sales?

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