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27-21.

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Increase the average Federal and State tax on tobacco products.

Target and baseline:

Objective

Increase in Combined Federal and
Average State Tax

1998
Baseline

2010
Target

27-21a.

Cigarettes

$0.63*

$2

27-21b.

Spit tobacco

Developmental†

*24 cent Federal tax; 38.9 cent average State tax in 1998.
†2.7 cent Federal tax in 1999; 7 States and the District of Columbia did not tax smokeless tobacco products in 1999.

Target setting method: Expert opinion; comparison to international tax rates.

Data source: The Tax Burden on Tobacco, The Tobacco Institute.