Fitch Ratings said in a press release Tuesday that the California Proposition 29, the Tobacco Tax for Cancer Research Act, could reduce payments that all states receive from the Tobacco companies under the 1998 Master Settlement Agreement (MSA).

California Proposition 29 would increase tax on cigarettes in the state by $1.00 per pack to $1.87 per pack in order to support cancer research, smoking reduction programs, and tobacco law enforcement. The last cigarette tax increase proposed on a California ballot was in 2006 and it did not pass.

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