The Impact of Cigarette Tax Increases on Local Government Budgets

Commentary By

Derrick A. Max

Derrick Max is Vice President of Policy at the Jefferson Forum and may be reached at dmax@jeffersonforum.org

Derrick A. Max

Derrick Max is Vice President of Policy at the Jefferson Forum and may be reached at dmax@jeffersonforum.org

Todd Hester

An ordained Presbyterian minister with over twenty years of service to the church. Originally from Travelers Rest, South Carolina, he received a BA in English from Furman University and an MDiv from Beeson Divinity School. He is formerly President and Founder of the Yorktown Foundation.

Commentary By

Jefferson Forum

Cigarette tax increases rarely produce the revenue expected by local governments, according to a January study released by the Thomas Jefferson Institute. Fairly consistently, the tax increases produce a decrease in revenue, don’t meet expectations, miss budget projections, or simply produce mixed results that often turn flat or negative in the following years. That study was updated with new appendices in April 2018.

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