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Tobacco Tax Supports Terrorism, Foes in California Say
August 11, 2006

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News Summary

Raising tobacco taxes in California could increase smuggling and aid terrorists who run cigarette-trafficking rings, according to opponents of the state's Proposition 86.

Inside Bay Area reported Aug. 6 that supporters of the tax hike, which would amount to 13 cents per cigarette, dismissed the warning as "scare tactics." A pair of recent cigarette thefts at California stores helped fuel the argument.

Hezbollah has been implicated in cigarette smuggling in the U.S., according to Leo McCarthy, president of the California Taxpayers Association. "This (Proposition 86) is an opportunity for terrorist organizations, including Hezbollah, to produce revenue to finance their activities," he said.

But Kris Deutschman, a spokesperson for the Yes on Proposition 86 campaign, said she expected foes of the tax "to do and say anything" to defeat the measure. Among the leading opponents to the tax are big tobacco companies. 

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