Governor Daniels's proposed increase of the cigarette tax by 25 cents a pack has been voted down in commitee.
The purpose of taxes should be to raise revenue for neccesary government functions. It should not be used to discourage lawful behavoir, no matter how much the governor or members of the state legislature might find that behavoir undesirable.
Taxes on cigarettes are regressive. The tax that a janitor pays for his Marlboros is the exact same that an accountant pays for her Benson and Hedges. A person with a nicotine addiction is not going to be deterred from smoking a pack a day, even if Daniels's increase would have caused him to pay an extra $91.25 annually for his habit. That money could have been used to pay for nicotine patches, gum, or other aids to break the addiction.