Cigarette Tax Revenue Projections Fail To Yield Results

Reason reports:

A 2008 Maryland cigarette tax increase only yielded 50 percent of projected additional revenue while cigarette tax revenue in Illinois has decreased by $69 million since 2007. Overall, only 30 percent of cigarette tax increases between 2003 and 2007 have met revenue projections—not a record on which to stake a state’s future.

The Laffer curve is here in cigarette tax extortion.