Current Governor of Alabama Robert J. Bentley presented last week his plan of taxes increase in the state. He is looking for a way to fill the budget deficit which needs $700 million dollar and his plan allows to fill the budget on a long term.
Bentley presented several variants of proposed changes. Experts were analyzing the new tax proposals and made their conclusions on them.
They were mostly delighted with raising the tax on tobacco products from 42.5 cents to $1.25 per cigarettes package saying it would be beneficial from all points.
Anti-smoking activists welcome the initiative saying thatAlabama has the third lowest tax on tobacco in the USA. The average tax across the USA is $1.54. And even with a tax of $1.25 the state is below the national average. It was estimated that this tax would bring to the budget additional $205 million per year.
It is expected that cigarettes tax increase would also reduce smoking rates in Alabama. It would have a great impact on younger smokers as cigarettes would become for them less affordable.
Health care experts talk about a reduction in health care costs caused by tobacco use. Here the talk is about millions of dollars annually in health care savings.