Cigarette tax may backfire
To the editor:
As we enter the final days of legislative session, Floridians are facing the possibility that bad economic policy might come to fruition in these bad economic times. Legislators are attempting to address Florida’s budget needs by increasing the state’s cigarette tax by 300 percent. It is imperative that the Florida Legislature understand the economic impact this increase will have on businesses statewide.
Over the past five years, cigarette taxes have increased 57 times in other states and in 41 of those cases, states did not generate the expected revenue. In fact, some states found themselves more than $80 million short -leaving them with new budget holes to fill.
These states have proven it is exceedingly difficult to predict how much revenue a cigarette tax will create. They’ve also proven when taxes go up, people look for other places to buy cigarettes. It would be devastating for Florida retailers and their employees if residents cross state lines or go to the Internet to purchase cigarettes in order to avoid paying the higher tax.
In our current economic climate, it is imperative the Florida Legislature makes decisions based on sound fiscal policy instead of settling for what they see as quick fix.
Jim Smith, President and CEO,
Florida Petroleum Marketers & Convenience Store Association