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Georgia Legislature Weighing Cigarette Tax Hike

With $2 billion in overspending estimated for this year, Georgia has joined a disturbingly long list of states looking to smokers to help fill state coffers.  House Bill 39 would raise the cigarette tax by $1 per pack and hike the tax on smokeless tobacco products by 150%.

Georgia’s nearby states have an average cigarette tax of just 36-cents per pack.  If the tax hike is passed, Georgians will have to pay $1.37 per pack, nearly quadruple that of their neighbors.  In a similar situation, Maryland raised the tobacco tax last year to cover a budget projection shortfall.  However, the problem was only made worse when sales fell 25% after consumers drove to nearby states with lower tax rates.

Click here for ATR's letter to Georgia Taxpayer Protection Pledge Signers.

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