Thanks NY Times.

If you’ve been looking for a way to burn money, try smoking. (Or just mail the money to USDemocrazy.)

On April 1, the government increased tobacco taxes. This was no minor increase; cigarettes will now cost 62 cents more a pack. (It’s a bad day to be a gritty detective on a police drama.)

So what are these extra federal funds for? It’s for nothing more than (get this) helping kids… That’s right! They want to use tobacco cash to expand the State Children’s Health Insurance Program.

Hmmm… Pit big bad smokers against cute little kids… Wonder who the public will back in that battle…?

But wait smokers — there’s more! States are jumping on the bandwagon. As states need new sources of income they are boosting taxes on tobacco. Even the south, a bastion of low tobacco taxes, is hiking fees.

Smokes sellers described panicky bulk buying before the tax, with post-tax sales being far less. Looks like the recession just got worse for some businesses.

One industry being helped by the increase in taxes is that of quit smoking hotlines. Record numbers of people are calling in for help dumping the habit.

So are the taxes a good source of income for cash-strapped governments (as well as a way to cut down on the number of smokers)? Or are the taxes going to punish smokers (often from the lowest economic quartile) as well as hurt American businesses (such as tobacco farmers and sellers)?