If you think tobacco taxes lower your tax rates you arent playing with a full deck, you are the butter knife in the drawer!
Proponents of increasing excise taxes contend that states may direct additional tax revenue to programs favored by voters in economically strapped times. These programs include Medicaid, economic development, health research, and various education programs. Moreover, advocates assert that increasing taxes have substantial economic and health benefits. Raising excise taxes increases rates of tobacco cessation and provides long-term health care savings to the states. Advocates reject the assertion that excise taxes are regressive and negatively impact lower-income individuals. Higher smoking rates among lower-income groups mean that their health suffers the most from tobacco-related illnesses. Consequently, lower-income groups will benefit the most from any effective new measures to reduce smoking, including increased state cigarette taxes.
Opponents of increased excise taxes argue that smokers-23 percent of the population-carry a disproportionate tax burden. Tax revenue is often used to fund expansive government programs unrelated to tobacco cessation, tobacco prevention and the treatment of tobacco-related illnesses. Further, opponents assert that increasing excise taxes is not a panacea for state budget crises. Excise tax revenue is sensitive to consumer demand, which it contends has fallen since the 1960's. Therefore, the amount of excise tax revenue collected by the states may vary annually. State governments would better address budget shortfalls by identifying sustainable sources of new revenue.
2003 Legislative Activity
http://www.ncsl.org/programs/health/tobaccotaxes.htm