To amend the Internal Revenue Code of 1986 to increase the excise tax on cigarettes, to allow a credit against such increase for 1/2 the State and local sales taxes on cigarettes, and to allow a deduction for health insurance costs to employees whose employer does not offer subsidized health insurance.

Amends the Internal Revenue Code to increase the excise tax on cigarettes. Allows a credit against such tax or refund to a cigarette manufacturer or importer of a portion of State and local sales taxes on their retail sale.

Provides a tax deduction for health insurance costs to employees whose employer does not offer subsidized health insurance.