Will a Cigarette Tax Increase Really Help Uninsured Children?

Brief Analyses | Health | Taxes

No. 231
Friday, May 23, 1997
by the NCPA

Senators Orrin Hatch and Ted Kennedy have joined forces to establish a new government program to finance children's health insurance. They propose to fund the program by increasing federal cigarette taxes from 24 cents to 67 cents per pack - an increase of 43 cents. The Hatch-Kennedy tax promises to raise $30 billion over five years, with $20 billion to go for children's insurance and $10 billion for deficit reduction.

 

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