Editorial: Raise cigarette tax, but not so steeply

Thursday, July 18, 2002 | 9:50 a.m.

Nevada has not raised its per-pack tax on cigarettes in 10 years, and we have no doubt the time has come for an increase. Our 35-cent tax pales in comparison to the tax in New York and New Jersey, which collect $1.50 per pack. California collects 87 cents, Utah 69.5 cents and Arizona 58 cents. So there is no doubt we should be revising ours upward. We disagree, however, with the American Cancer Society, which says an increase of as much as $1 a pack would be a "win, win, win." We hope the Governor's Task Force on Tax Policy, which is considering the society's suggestion, will see the "lose, lose" that should also be weighed.

The wins cited by the society are an increase in state revenue, improvement in public health, and a poll taken among 500 Nevadans that supported the hefty increase. We see two problems, though. One, the very government that has programs to combat smoking may look hypocritical as it comes to rely on the increased tax to pay for important programs, such as education. This could be solved by the state remaining committed to its anti-smoking campaigns and dedicating all of the added revenue to health costs. The other problem is not so easily solved. If cigarettes soar in price, the potential profits in illegal sales could cause a boom in bootlegging. An increase, say, of 50 cents would put Nevada on a par with California and bootleggers would not have incentive. Any immediate increase much higher than 50 cents could send potential gains up in smoke.