Wednesday, April 18, 2007

Tax Foundation: Cig Tax Hike Highly Regressive


"As you can see from the figure, once the burden of cigarette taxes is accounted for, only the top half of Tennessee earners come out ahead from this part of the Governor's plan, while the lowest-income households pay much more in taxes than they receive back in spending. Overall, this component of the Governor's plan alone results in a fiscal redistribution of $2.3 million from the bottom 50 percent of Tennessee earners to the top 50 percent"