NACS Member Advocates Against Higher Tobacco Taxes

Op-ed shares why raising tobacco taxes would be bad news for western Pennsylvania retailers.

August 05, 2015

PITTSBURGH – This Sunday’s Pittsburgh Post-Gazette included an opinion piece authored by Gary Gloeckl of NACS supplier member company AJ Silberman & Co. In the editorial, Gloeckl laments the “here we go again” scenario in which Pennsylvania’s governor is proposing an increase in tobacco taxes as a means of addressing the state’s anticipated budget shortfall.

“Hopefully, the no-tax proposal put forth by the state Legislature will prevail and the governor will come to realize what everyone seems to know about tobacco taxes; they are not an effective revenue source,” writes Gloeckl. “The path to a strong economy is to curtail spending and find reliable revenue streams that do not hurt business.”

In the editorial, Gloeckl shares the concern that retailers in western Pennsylvania will be uniquely harmed by an increased tax on tobacco, due to their proximity to Ohio.  That state recently raised its cigarette tax to $1.60 per pack, identical to Pennsylvania’s, creating price parity between the two states for the first time in six years and eliminating the need for Pennsylvania consumers to save money on tobacco purchases by going to Ohio.

“Most retailers are continuing the slow climb out of the 2008 recession, writes Gloeckl. “Now is not the time to raise taxes on these products. It’s time to say enough and reject these higher taxes.”

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