Where there’s smoke
The progressive case for increasing the cigarette tax
Out of all the revenue options that Oklahoma has to fix a deep budget hole, the one getting the most attention from legislative leaders is increasing the cigarette tax. Last year’s attempt to increase the cigarette tax received a majority of votes in the House, but it fell short of the three-fourths supermajority required by State Question 640 for any tax increase, with Democrats making up the biggest block of no votes.
The Republican leadership is trying again this year for a $1.50 per package increase in the cigarette tax with HB 1841, but to get it done they will need some votes from House Democrats. The biggest objection from Democrats is that a cigarette tax increase is regressive — taxing a larger share of income from the poorest Oklahomans — and would result in a troubling tax shift after recent income tax and gross production tax cuts that predominately benefited wealthy individuals and large corporations.