Wednesday, March 24, 2010

Raising cig taxes can make the poor and the recession worse

[[[Sadly, many of the proposed taxes target the pocketbooks of Georgia’s poorest families – many of whom are already struggling with the burden of unemployment. The potential cigarette tax, for example, would add a one dollar levy on every pack – a burden that would disproportionately affect lower-income individuals who have a higher portion of smokers than other demographic groups. For example, more than one-third (34 percent) of those earning less than $12,000 a year are smokers, according to a 2009 Gallup poll. Furthermore, this targeted population also faces an unemployment rate of 30.8 percent, according to data from February 2010.

As such, it is the poor and the unemployed being forced to surrender additional funding to the state government in order for the state government to keep on spending. This shell game seems counter-productive, and experts argue it is. Increasing taxes on the poor – or anyone else for that matter – during a recession is a tried and failed strategy that stifles growth and will perpetuate Georgia’s already high rates of unemployment]]]

1 comment:

Jason T said...

My comment on dis person's opinion:

[illinoissmokersalliance] Re: [kentuckyrights] the poor get hit the worse on cig taxes
Wed, March 24, 2010 12:35:22 PM
Jay [Chat now]
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Raising taxes might turn more of the poor into criminals as well. Where more people gotta to whateva the F it takes to get wha dey want, including cigs. The fact more keep getting unemployed likely raises any crime rate in itself.

I would've laughed 20-30 years ago if someone told me cigs will be a valuable asset when it comes to selling thangs in the streets. But I definitely believe it on cigs being worth lots (to the poor and underground cig dealers) in modern times. Cigs must be worth a lot if GA sees more cig heists if their cig tax increase goes thru.