Cigarette Tax – Granite Grok

Sylvia Larsen – Zipper head

I suppose you’ll want some context for that headline. Back in December (12/9/2011) I explained why New Hampshire should continue lowering tobacco taxes. I suggested we adopt some kind of schedule by which we would sunset tobacco taxes over the next decade based of the long term decline in sales. Why, after all, would you risk the states ability to invest in anything, including the left’s rhetorical “neediest residents in their most desperate hours (or something),” using an unreliable source of revenue in decline?

OK, what I actually said was

“Only a progressive zipper-head would rely on more revenue from something they want to get rid of. Increasing the tax on a declining market will only accelerate the unreliability of the revenue stream. That creates the opportunity for bigger budget holes that must then be filled on the fly.”

As if by magic, Sylvia Larsen, Democrat super-minoirty leader of the New Hampshire State Senate, in the face of declining unit sales, as fewer people smoke, after a decades long trend indicating that tobacco purchases will likely continue to decrease in the future, thinks we should increase our reliance on cigarette taxes in New Hampshire.

Zipper head. (doofus, goofball, goober, dunderhead, maroon, doh!) see note#2 below

Making ‘Cents’ To Democrats

by Steve MacDonald

Getting Pennies while we can - sunsetting the cigarette tax Rep Ken Wyler, R-Kingston NH, took the Portsmouth Herald to task, in Fosters Daily Democrat, (Fosters.com) for its recent editorial on the cigarette tax decrease. The Herald would like us to continue raising tobacco taxes every year, just like when the Democrats were in power, essentially pimping the Democrat party argument that we need the revenue, and that the tax decrease was pointless.

I’ve been arguing for a much larger decrease of the cigarette tax than the Republican House settled on for years. It seemed obvious to me. We make a hell of a lot more on Rooms and Meals taxes and that revenue is shared with towns–(ironic considering how Democrats pilfered that tax for reasons that will become obvious in a moment.) Increased commerce overall is a benefit to the business community, profits, employment, wages, and the business tax revenue that grows as a result. Cigarettes are a draw, even as sales drop. Why don’t Democrats see it?

Smoke Em After You Buy Em…In New Hampshire

by Steve MacDonald

Right off the bat, thanks to Matt at Red Hampshire for reminding me about Ken Wyler’s bill to cut the cigarette tax by $0.10 cents per pack. (HB 156) I’ve been queuing up a post on this having written about it often and what better time than now to unload it.

First the basics. Wyler thinks cutting the tax by a buck a carton will actually increase revenue by attracting more out of state traffic. Ken is correct. A larger cut would be better, but I guess we can crawl before we walk. And with that in mind, lets review why it will raise more revenue. And I’m not even going to have to go back very far for a decent flashback.

Why Not Cut The Gas Tax?

by Steve MacDonald

I’ve been suggesting for years now that cutting the cigarette tax would raise more revenue. That is the point of a tax after all. And with neighboring states that are stuck on stupid when it comes to the rules and affects of taxation any reduction will increase other commerce as people come over the border … Read more