The debate over the possibility of a significant bump in the cigarette tax moves to the front burner today. The Idaho Council on Indian Affairs is expected to take up the discussion, which includes a plan to increase the tax on a pack of smokes from 57 cents to $1.25. Such an increase would be expected to generate nearly $50 million, the proposed shortfall for Health and Welfare's Medicaid programs.
Idaho's Native American reservations are not required to uphold the tax but lawmakers are eager to get the tribes on board, because a bump in price could cause a dramatic disparity between the price of cigarettes sold on and off reservations.
According to the American Lung Association, Idaho's current cigarette tax generates approximately $47 million in revenue. So why wouldn't a 73-cent bump raise more than $50 million? Because the increase is also expected to cut down the amount of cigarettes sold in Idaho.
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