Higher Costs to Light Up

Smokers and others who use tobacco need to be prepared for the largest federal tobacco tax increase ever, which will happen on Wednesday.

Currently, the federal per-pack tax is 39 cents. Starting on Wednesday, this tax will jump to $1.01, which means that the industry may see a new wave of people hoping to quit lighting up. Bad news for the tobacco industry could be good news, however, for stop-smoking products, like nicotine gum.

The jump on tobacco taxes is part of a health initiative signed my President Barack Obama, and the proceeds will finance an expansion of health insurance benefits for children.

Image via Nvd Merwe – SoulMyst.com