LUNGS: Cig tax can be deceiving

The American Lung Association's F grade for its cigarette tax in Idaho misses the mark (Jan. 20, "Tobacco report: Idaho failing").

The grade narrowly assumes that higher cigarette taxes are good for a state. While some people may quit smoking from a big hike in the state's tobacco tax, the negative effects from raising the tax would be much more evident. Tobacco taxes unduly affect those who can least afford to pay them and rarely bring in the revenues they are expected to.

Lawmakers and non-smokers need to keep in mind that the overall tax burden is what matters. Increasing taxes, whether it's on incomes or targeted products, will do more harm than good for the state economy and long-term fiscal outlook. Both take money out of the private sector and put it into funding an even bigger government bureaucracy

As a matter of sound tax policy Idaho should avoid picking winners and losers with the tax code and instead focus on keeping their overall tax burden low.

JOHN NOTHDURFT

Chicago

John Nothdurft ([email protected]) is director of government relations for The Heartland Institute.