There are 4 types of taxes on cigarettes - federal, state, city (in some places like New York City) and sales tax (where they get to tax the taxes.)
One of the reasons the government doesn't want people to quit is because smokers are an unsympathetic group to most voters. When the state couldn't balance their budget earlier this year, they added another $1.60 per pack. If they hadn't, they would have needed to raise the money some other way and people would complain. But, as long as it's just taxing smokers, they "deserve" to be punished.
In NYC, the combined city and state tax is $5.85 per pack. Add 8.875% sales tax (in the city) and that's $6.37 revenue per pack. A Manhattanite (or someone in one of the other 4 boroughs) who smokes one pack a day will add $44.59 to the city and state treasury each week and $2,325 a year. So, if 215,000 people in the city quit smoking, that's half a billion dollars in lost taxes.
One of the reasons the government doesn't want people to quit is because smokers are an unsympathetic group to most voters. When the state couldn't balance their budget earlier this year, they added another $1.60 per pack. If they hadn't, they would have needed to raise the money some other way and people would complain. But, as long as it's just taxing smokers, they "deserve" to be punished.
In NYC, the combined city and state tax is $5.85 per pack. Add 8.875% sales tax (in the city) and that's $6.37 revenue per pack. A Manhattanite (or someone in one of the other 4 boroughs) who smokes one pack a day will add $44.59 to the city and state treasury each week and $2,325 a year. So, if 215,000 people in the city quit smoking, that's half a billion dollars in lost taxes.