As this is written, reports are that Gov. Easley plans to ask for a substantial increase in the cigarette tax. This is the same Gov. Easley who, only a few months ago, implied that his opponent would raise taxes.

The politicians have continued to increase spending, even though the state’s economy has slowed over the past few years. As a result, North Carolina is facing yet another budget shortfall this year.

At first glance, raising tobacco taxes might seem to be a good idea. Nationwide, only about 25 percent of adults smoke. Although the percentage of smokers is a bit higher in North Carolina, the majority of Tarheels do not buy cigarettes and would not be directly affected by the tax increase. Proponents say a higher tax would reduce the number of smokers, thus contributing to the overall health of the population.

If an increase in tobacco taxes caused a proportionate decrease in smoking, the state would not collect more revenue. The politicians who support higher cigarette taxes know this. They don’t want smokers to kick the habit. They just want to take more money out of their pockets.

Officials may be loath to admit it, but much of the additional revenue raised from a higher cigarette tax would be offset by the loss of money the state is now collecting from residents of other states.

Estimates are that at least 40 percent of cigarettes sold in North Carolina are consumed in states with higher tobacco taxes. When a resident of New York or some other high-tax state buys a carton of major-brand cigarettes in North Carolina, the state collects about $1.50 in sales tax plus 50 cents in cigarette tax. If North Carolina substantially increased its tax, it would lose this business to states with lower tobacco taxes.

Additional revenues would be lost due to residents of North Carolina buying their cigarettes in South Carolina or other states with a lower tax.

In addition to the direct loss of revenue, thousands of North Carolinians, including many in Iredell County, are employed by retail businesses that sell cigarettes to residents of other states.

The experience of other states shows that tobacco tax increases result in only a small reduction in the number of smokers. Thus the effect of a tax increase is that those who do smoke just pay more money to the state. They would have less to spend on other things, thus taking money out of the economy.

North Carolina has already collected hundreds of millions of dollars from the settlement of the lawsuit the states filed against the major tobacco companies. Most of this money has been squandered. The same thing would happen with money from a higher cigarette tax.