Smoke break gets more expensive with tax boost

WASHINGTON (AP) -- However they satisfy their nicotine cravings,
tobacco users are facing a big hit as the single largest federal
tobacco tax increase ever takes effect Wednesday.
Tobacco companies and public health advocates, longtime foes in
the nicotine battles, are trying to turn the situation to their
advantage. The major cigarette makers raised prices a couple of
weeks ago, partly to offset any drop in profits once the per-pack
tax climbs from 39 cents to $1.01.
Medical groups see a tax increase right in the middle of a
recession as a great incentive to help persuade smokers to quit.
Tobacco taxes are soaring to finance a major expansion of health
insurance for children. President Barack Obama signed that health
initiative soon after taking office.
Other tobacco products, from cigars to pipes and smokeless, will
see similarly large tax increases, too.