Largest Federal Tobacco Tax Increase

Tobacco users are facing a huge financial hit as the single largest federal tobacco tax increase ever go into effect Wednesday, April 1st of 2009.
Tobacco taxes are increasing to finance a major expansion of health insurance for children.

Cigarette per-pack tax climbs from 39 cents to $1.01. Tax on chewing tobacco will go up from 19.5 cents per pound to 50 cents. The total expected to be raised over the 4 1/2 year-long health insurance expansion is nearly $33 billion.

Medical groups are hoping this will help persuade smokers to quit.

Congress is also considering legislation to empower the FDA to regulate tobacco. President Obama, who has agonized over his own cigarette habit, said he would sign such a bill.