Cigarette tax increase approved by House lawmakers

M.L.


Boston (AP) -- House lawmakers have approved a package of tax hikes, including a dollar increase on a pack of cigarettes and a series of business tax loophole closings.

The cigarette tax would generate an estimated $175 million and would go into effect in July if the bill becomes law. An amendment passed during tonight's debate would dedicate those revenues to health care. The final vote on the bill was 131-to-23.

Supporters also said the cigarette tax would deter smoking. Critics said raising taxes doesn't make sense in a recession, and would drive smokers across the border.

Lawmakers made some changes to the business portion of the bill. The initial version softened the impact of the loophole closings with a gradual cut in the corporate income tax rate over several years. The final bill wouldn't cut the tax rate quite as deeply and would link future cuts to minimum gains in corporate tax revenues.

The bill heads to the Senate next.


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