To amend the Internal Revenue Code of 1986 to increase the tax on cigarettes to 40 cents per pack, and to provide annual adjustments to the rate of such tax based on increases in the cost-of-living.

Amends the Internal Revenue Code to increase the excise tax on cigarettes from: (1) $8 to $20.00 per thousand for small cigarettes; and (2) $16.80 to $42.00 for large ones. Indexes these amounts beginning in 1991.