Could Indiana See State Cigarette Tax Double in 2023?
There is no question that the cost of goods and services is on the rise and smokers in Indiana could soon be seeing even higher cigarette prices.
Inflation has continued to rise throughout 2022 driving the costs of goods and services higher and higher. According to Forbes, Americans have seen inflation rise by more than 7.4% this year alone, while wage growth has not followed suit. This means that our hard-earned dollars simply do not have the same buying power that they did a year ago and most of us are not earning more of those dollars to offset the difference. According to Forbes,
One of the biggest economic stories of 2022 has been high inflation, everything from fuel to food to entertainment has gotten more expensive over the past year, and the Federal Reserve has taken steps to try to curb it. At the same time, wage growth hasn’t kept pace, leaving many feeling the pinch as they’re unable to buy the same things they could a year ago.
Increasing State Taxes
While things like the pandemic, the war in Ukraine, and a number of other issues have influenced the rise in inflation across the country, there are other reasons that consumers are seeing an increase in price on some goods and services - taxes - and if some health experts get their way, Indiana smokers could soon see cigarette prices climb.
Cigarette Tax Could Climb
According to VincennesPBS.org, experts in the healthcare industry are encouraging lawmakers to increase the tax on cigarettes. Currently, Indiana collects $0.99 per pack. That has been the going tax rate for cigarettes in the Hoosier State since 2007. However, if they get their way, that tax would jump to $2 per pack increasing cigarette prices across the state.
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