Why Are States Not Increasing The Cigarette Tax?

The Centers For Disease Control Says That States are Behind In Increasing the Cigarette Tax

One of the best ways to help cut smoking is by boosting cigarette prices. However, a CDC report indicates fewer states are doing that.

15 states in 2009 raised their excise taxes, but only 8 states in both 2011 and 2010 did the same. While New Hampshire decreased it. The report states that increasing the tax reduces overall demand and helps stop teen from beginning. Only 1 in 5 teens smoke, but there is a drop-off of the decline.

The report mentions that the national tax on cigarettes is now at $1.46 per pack in 2011, up from $1.34 per pack in 2009. NY has the record with $4.35, with Missouri at the bottom with $0.17.

Joseph Califano of NCASA states that it is great that a pack of cigarettes in NY is $10.50, but he goes on to say that it should be $100.

Why are they reluctant to raise state taxes on cigarettes? Many of the states who raised cigarette taxes also increased funding for tobacco prevention programs.

Healthcare officials believe that the bad economy may have something to do with the states backing off of funding for tobacco control. Dr. McAfee does not believe this. He says that there is ample evidence that the programs and higher taxes work and that the states will recoup their investments. He says that the states are not getting the full benefit from the cigarette taxes that they could be getting.

Tax Carnival Ecstasy – March 27, 2012

Welcome to the March 27, 2012 edition of Tax Carnival Ecstasy. We start this edition with Stefanie who has an article Tax Time, and how she is loving TurboTax while filing her own return. Mark Roberts takes a look at the The Tax Brackets for 2012. We  have a post on the Common Bookkeeping Mistakes That Weigh Down On Business Profits by Bill Smith. And finally there’s a look at the 2013 Federal Budge and how it affects your taxes. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

Frank Goley presents Bond Analysis posted at Easy Forex News.

Amy Gardner presents What is a Personal Loan? | Personal Loans posted at Personal Loans, saying, “none

credits

Amy Gardner presents Little Known Advice for Those Seeking a Personal Loan posted at Small Business Credit Cards, saying, “none

Deborah Brown presents Credit Options for Your First Credit Card | First Credit Card | How to build credit with first time credit cards. posted at First Credit Card, saying, “none

Sandra Adams presents Improving Your Credit Score posted at Credit Cards for No Credit, saying, “none

filing

Stefanie presents Tax Time | Making of a Mom posted at Making of a Mom, saying, “I love tax time because TurboTax makes it possible for normal people (not tax professionals) to complete their own taxes!”

Mark Roberts presents The Tax Brackets for 2012 posted at Tax Brackets, saying, “The tax brackets for 2012 have been announced. This post highlights the new brackets for 2012.”

retirement

David K presents Baby Boomers are you Worried about having enough saved for retirement? posted at Personal Finance Blog, saying, “Here’s a simple approach: work just a few years longer. By accumulating more savings and shortening your withdrawal period, you’ll reduce the lump sum needed to generate the necessary income at retirement.”

Dividend Growth Investor presents Does entry price matter to dividend investors? posted at Dividend Growth Investor, saying, “The reason for the lost decade in stocks is that many otherwise quality companies were overvalued in the early 2000s. For example Johnson & Johnson (JNJ) was trading at 29.30 times earnings in early 2000, whereas McDonald’s (MCD) traded at 26.90 times earnings. Even some of the best dividend stocks are not worth paying more than 20 times forward earnings.”

taxes

Bill Smith presents Common Bookkeeping Mistakes That Weigh Down On Business Profits posted at 2009 Tax, saying, “Bookkeeping serves as a foundation for sound financial decision making and planning and therefore it is essential that financial records are kept up-to-date.”

Bill Smith presents 2012 Taxes And The Proposed 2013 Budget posted at2011 Taxes, saying, “President Obama has plans to make changes in the tax code to raise funds for his 2013 budget to jump start the U.S. hiring.”

Bill Smith presents Proposed Changes From 2012 Taxes posted at2010Taxes, saying, “The current administration’s proposed budget for 2013 includes some items from 2012 taxes with a wish list of ideas added.”

Bill Smith presents 2012 Taxes And The Proposed Tax Rates posted at 2011 Taxes, saying, “President Obama is planning to tax income from capital gains as ordinary income. This will increase the top tax rate to 39.6 percent.”

CultOfMoney presents How government budgets work posted at CultOfMoney, saying, “Whether you’re trying to get a sweet-ass government job, planning to run for office, want to know how you can influence the process to your favor, or you’re just a concerned citizen, knowing how the federal state, county, and cities create a government budget, and knowing how government budgets work in general will help you. So become involved and go to a local budget hearing, and after reading this article, you’ll sound like someone in the know whose opinions should be respected.”

tips

DeWitt Dudley presents What Are The Best Trust Structures To Protect Liquid Assets? | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “Why is the non-U.S. trust so effective? Because the both the trust and the assets are not subject to the jurisdiction of a judge in the United States.”

Sean presents Student Car Loans posted at My Next College, saying, “Students still must have adequate income to afford the payment and insurance.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 

Technorati tags: tax carnival ecstasy, blog carnival.

Simple Tips To Help You Save On Taxes At Work

If you want to reduce the amount of tax you pay, you should let your employer cover some of your expenses.

By simply allowing your employer to cover your expenses with pre-tax dollars, you will be able to save hundreds and sometimes even thousands of dollars annually.

The best way to save on taxes.

Make arrangements with your employer to pay for some of your expenses every month. Ask you employer to pay for an expense straight up. Any employer will do this because, a) Its a wonderful thing to do, and b) The expense will be a deductible expense which can be deducted when calculating taxes.
Case  Study
Pretax Expenses

Assuming your income tax bracket is 25 percent and you pay a monthly rail pass of 100 dollars out of your after tax dollars. This means that your income was 133.33 dollars but 33.33 dollars was deducted as taxes before you could put your hands on it and the remaining 100 dollars is what you withdrew from the bank account for your monthly rail pass.

If you asked your employer to pay for your monthly rail pass using pretax dollars, only 100 dollars of your income will be used. This means that you will save 33.33 dollars every month or 400 dollars annually.

All you have to do to save on taxes is to identify expenses that your employer can pay for you using pretax dollars and contact human resources to see how the company can help you.

Planning For Tax Changes

Potential changes in the tax laws proposed by President Obama mean that right now is a great time to start budgeting for your 2012 taxes.  One major change will be a change for those in the highest tax bracket from fifteen to nearly forty percent as part of sweeping increases in taxes collected from high-income individuals in the next ten years.

The plan calls for high taxes on earnings from dividends, a departure from earlier policies that protected earnings on this type of income.  The White House feels that the system for taxing investment earnings is one of the most unbalanced part of the current tax code, and this measure is one step to help fix the issue.

For those planning for their 2012 taxes, this means that individuals and couples need to begin looking at their investment income from previous tax years and determining whether they will be subject to these increased tax rates.  Setting aside additional money from a monthly or yearly budget to cover this potential tax increase is the best way to offset the effect of higher rates without suffering tax-time shock.

The overall goal of President Obama’s tax changes is to reduce the federal budget deficit that has plagued the US during this economic downturn.  While this change is not expected to eliminate the deficit entirely, it is part of a long term plan to use tax money from wealthy Americans to reduce the tax burden on lower income workers while still raising needed revenue.