The Americans for Tax Reform just dropped a press release on the 111th Congress's first tax hike: an excise tax on cigarettes. Congress will be tacking on 61 cents, thus increasing the tax by 156%.
Who will be burdened? The middle- and low-income Americans that they said they will not raise taxes on:
* 55 percent of smokers are “working poor”
* One in four smokers live below the poverty line
* On average, smokers, whose median income is a little more than $36,000, make about 30 percent less than non-smokers.
It's interesting to note that, as ATR points out, Obama promised in the presidential debates that "if you make less than a quarter of a million dollars a year, you will not see a single dime of your taxes go up."
Whoops! Unless, of course, he only meant their federal income taxes wouldn't go up. Gotta watch out for that fine print!