Tax Reconsidered
COLUMBUS, Ohio -- The size of a proposed increase to Ohio's tax on cigarettes could shrink by 14 cents under last-minute negotiations to balance the state's budget.
The new proposal would increase the current tax by 36 cents a pack, to 60 cents, instead of by 50 cents. The current tax is 24 cents, the Associated Press reported.
Under the latest plan, the cigarette tax would raise about $315 million a year instead of about $400 million. Gov. Bob Taft and lawmakers have until Friday to plug the state's $1.7-billion deficit.
Taft, a Republican, prefers the 50-cent increase as the best way to ensure "significant ongoing revenue" for the state.
The new proposal would increase the current tax by 36 cents a pack, to 60 cents, instead of by 50 cents. The current tax is 24 cents, the Associated Press reported.
Under the latest plan, the cigarette tax would raise about $315 million a year instead of about $400 million. Gov. Bob Taft and lawmakers have until Friday to plug the state's $1.7-billion deficit.
Taft, a Republican, prefers the 50-cent increase as the best way to ensure "significant ongoing revenue" for the state.