In Canada, They're Cutting Sin Taxes

Even as President Clinton proposed quadrupling the U.S. cigarette tax, Canada slashed its taxes on smokes, reducing its $2.69-per-pack tariff by up to $1.82 on Feb. 9. Ironically, Clinton cites Canada as an example of how high taxes can curb smoking: Consumption there has dropped almost 40% in the past decade. But Canadians continue to buy cheaper smokes smuggled from the U.S. Lower taxes, Canada hopes, will shut down the smugglers.

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