At this point in the new year, the following states have introduced bills to raise the state's cigarette tax:
* Illinois ($1.01/pack increase)
* Mississippi ($.50/pack increase)
* Missouri ($.16/pack increase)
* Nebraska ($1.35/pack increase)
* Oregon ($1.00/pack increase)
* Texas (2./pack increase)
* Virginia ($1.15/pack increase)
Four out of six states are following the trend identified last year, and proposing a cigarette tax increase of $1 or more per pack. However, the Illinois legislature voted in January to raise the state income tax rate by 66% and increase the corporate tax rate by 45% to partially resolve a projected $15 billion dollar state budget deficit. The Illinois lawmakers did not pass the $1.01 per pack cigarette tax increase. Illinois Governor Pat Quinn signed the income and corporate tax increases into law, which are expected to generate $6.8 billion dollars.
Reference: The Dollar Standard More states propose cigarette tax increase of $1 per pack by Thomas Briant, NATO Executive Director, Tobacco E-News January 25, 2011.
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