Marketplace

Packing on the tobacco tax

Hey smokers, will it make you feel better knowing it's for the kids? The Wall Street Journal says Senators are talking about hiking the federal cigarette tax to $1 a pack. Right now, it's 39 cents, plus state taxes. Democrats want to use the extra revenue to add $50 billion to the State Children's Health Insurance Program, also known as S-Chip, which provides health insurance to low-income children.

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More taxes for oil companies

Oil companies may be looking at a tax hike. The House of Representatives approved an $18 billion tax increase on oil companies over the next decade. The bill would provide tax breaks for energy conservation and alternatives like wind and solar. It would cost the five biggest oil companies an average of $1.8 billion a year.

Don't cry for them too hard -- they made $123 billion last year.

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Latest bad news: sales tax revenue drop

Ok, so consumer confidence is low. Retail sales are growing very slowly these days. But check out this very telling piece of information: The New York Times reports that of the 36 states that have released sales tax revenue numbers this year, 21 are showing significant declines. Excluding Texas, the other 35 states show an average of 1 percent decline in sales tax revenues.

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A little auto tax relief

High gas prices are having such an impact on America's wallets that the IRS is stepping in to help you out. The agency is raising the automobile mileage rate that businesses can claim on their taxes. For the last six months of this year, the standard rate to calculate deductible operating costs for business vehicles will increase from a little over 50 cents to a little over 58 cents. The IRS also plans to increase deductible medical or moving expenses from 19 cents to 27 cents a mile.

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