Federal Budget Sees Cigarette/OTP Tax Increases Ahead

cigarettesmoneyAmount of proposed tobacco taxation increases are not yet known.

President Obama plans to propose a budget this week that would raise the federal cigarette and tobacco taxation rates to help fund an expansion of free pre-kindergarten education nationwide, the New York Times reported.

The amount of the proposed federal cigarette and tobacco taxation increases was not reported.

The National Association of Tobacco Outlets (NATO) noted that the last time the federal cigarette and tobacco taxation rates increased was April 1, 2009. At that time the cigarette tax grew from 39 cents per pack to a whopping $1.01 per pack, while tax rates on other tobacco products were also raised.  The President plans to release his budget proposal to Congress this week, at which time more details on the exact increases should be known.

  • MM

    NOT SURE ANYTHING CAN STOP THIS TAX MACHINE. MAYBE THE TAX MACHINE COULD LIVE WITHOUT THE FLOOR TAX ON EXISTING SUPPLY. THIS WOULD ELIMINATE THE
    NEED FOR TAKING MORE MONEY OUT OF OUR POCKETS TO PAY FOR INVENTORY WE ALREADY OWN.

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