MADISON, Wis. – To fund increasing healthcare costs, the Wisconsin Joint Finance Committee is considering raising the state’s cigarette tax by $1.25 per pack, the Associated Press reports.
Wisconsin Gov. Jim Doyle proposed the tax increase and has earmarked the additional revenue to fund anti-smoking initiatives and other healthcare expenses. With a Democrat-controlled committee, the cigarette tax increase is expected to be part of the budget.
Gov. Doyle’s budget raises the cigarette tax from 77 cents to $2.02 per pack on September 1, 2007. If passed by the legislature, Wisconsin would have the fourth highest cigarette tax in the nation, trailing only New Jersey, Rhode Island and Washington.
Other tobacco product taxes would jump from 25 percent to 65.6 percent of the manufacturer’s list price.