In a New York Times article titled, "State Receiving Tobacco Millions," Spitzer praised a "huge influx" of $681 million paid to the state under a settlement with tobacco companies, supposedly to cover smoking-related public health costs. The money "will help reduce the amount of taxes that New Yorkers will have to pay in the future," Spitzer claimed.

What is unstated is that the "tobacco millions" are simply part of the profits raked in by the big cigarette monopolies after they jacked up the price of a pack. At the time of the settlement the tobacco companies openly said they would pay New York and other states by raising the price they charge for cigarettes, making the $681 million infusion into the state’s general funds simply an indirect tax on working people.

In welcoming the funds, there is not even a pretense by state officials that this money will be used to care for workers and farmers with smoking-related illnesses, or on programs to help people quit the highly addictive habit.

Moreover, many states, faced with budget shortfalls in wake of the economic recession, are increasing taxes on cigarettes and other tobacco products, making working people pay a double fee to fatten the treasury of the capitalist state.

Three days after Spitzer’s statement, New York mayor Michael Bloomberg laid out his plans for cutting the budget and one tax hike he hopes to push through: an increase of $1.42 for each pack of cigarettes bought in the city.  
 
 
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