Biggest U.S. tax hike on tobacco takes effect

By Wendy Koch, USA TODAY

Smokers are gasping at higher cigarette and cigar prices as the largest federal tobacco tax increase in history takes effect.

“Oh my gosh,” Bernardo Torres said Tuesday when a clerk at a CVS Pharmacy in Falls Church, Va., told him the new price, which went up in anticipation of the tax increase. Torres wanted to buy his aunt two cartons of cigarette-size cigars, but he walked away empty-handed after hearing the new price: $134. The tax on little cigars went from 4 cents to $1.01 a pack.

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