Federal Cigarette Tax Nearly Triples

Chicago, IL—Add tobacco to the list of products getting more expensive…

Vallego Brown, smoker: “It’s like alright, enough on the smokers, already.“

Linda Mott, smoker: “I think they should find something else to tax.“

As of Wednesday, the federal tax per pack increased an additional 62 cents…and 30 cents on smokeless tobacco. President Barack Obama signed the tax hike into law, shortly after he took office. Revenues will support a major expansion of health insurance for children. As a result, manufacturers began raising prices in March, to make up for their anticipated loss in profits.

Sue Eagleton, Buyer’s Warehouse: “As a wholesale company, we had to pass it along to our customers. They had to pass it along to their customers.“

With the average price per pack between $8 to $10, in many major cities, some smokers say, drastic decisions will follow:

Cathie Lampton, smoker “Yeah, I’ll probably quit.“

Christian Arnedo, smoker: “It’s inspired me to quit smoking cigarettes.“

That’s exactly the effect the CDC’s Doctor Matthew McKenna is hoping for.

Dr. Matthew McKenna, CDC: “A 10 percent increase in price will result in about a 4-5 percent decrease in the consumption of cigarettes.“

That number climbs to ten percent among young smokers.. the group least likely to afford the high cost.

Dr. Matthew McKenna: “That’s the thing that pushes them over the edge, and they’re unlikely to come back.“

Diana Alvear, reporting: “Tobacco companies tell ABC News…the tax increase will lead to major job losses for the industry, an industry that is already on the decline…and should not be depended on…to fund major federal health initiatives…“