Smoking and Externalities

I think the current law in Indianapolis is fair - banning smoking except places like bars, clubs, bowling alleys (and casinos?)... these are places that if you patronize them or you work there, you should expect smoking as a part of the ambiance. I think this newer potential law is far too restrictive.

A better idea would be to, in conjunction with a ban containing the above exceptions, increase the cigarette tax statewide to a substantially higher level to be more in-line with other more progressive States' levels. Or, if the concertn is more targeted to the exceptions, add a specific tax to all cigarettes purchased at bars, casinos, clubs, etc. That would allow smoking to remain legal in those few places but also provide significant revenue to the State to counteract the negative side-effects on others. This is doubly true since I imagine the demand for cigarette purchases at these locations is quite price-inelastic (from my own observation).