A tobacco tax plan recently introduced by Pennsylvania Gov, Tom Wolf has some industry leaders concerned their profits could go up in smoke.
It's one of many new taxes the governor is pushing for, in hopes of lowering property taxes and financing $4 billion in education funding.
The tobacco tax would generate more than $400 million annually, according to the budget, but some local smoke shop owners said they fear it will keep customers from buying products in state.
George Charles owns G&E Smoke Shop on Hamilton Street in Allentown. He's been in the business for more than 20 years and said, with time, the tax burden has intensified.
"It just seems they keep taxing, taxing, and taxing," Charles said.
If passed, smokers would pay five cents a cigarette, or about $1 a pack. It would bring in about $350 million in state revenue.
"A dollar a pack, tacked on to a $1.60 a pack already on, it'll be $2.60 when all said and done," Charles said.
According to Charles, customers would be spending more on taxes than on the actual product.
The proposal also looks to impose a 40-percent wholesale tax on tobacco, including cigars and e-cigarettes. It's expected to generate about $84 million.
Charles said the move could send business out of the state.
"People will turn to other avenues, the Internet, catalogs," Charles said.
If the proposal passes, it would be implemented in October 2015.
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