Monday, January 31, 2011

Raising Missouri Taxes a Smoky Issue

Both the Republican controlled Missouri General Assembly and Democratic Gov. Jay Nixon actually agree on something. They don't want to see taxes increase.
But at least two detractors say raising Missouri's cigarette tax can help fund government shortfalls of around $500 million. GOP Senate Appropriations Committee chair Kurt Schaefer agrees smoking is a financial burden to Missourians. Even if he were to vote for raising the cigarette tax, the increase would go to a vote of the people because of Missouri's Hancock Amendment limiting tax increases.
Schaefer's op-ed in the Columbia Tribune said he would support either an initiative petition to put the issue to Missouri voters or a joint resolution of the General Assembly. Schaefer has been a champion of smoking cessation programs.
His Democratic colleague in the House, Rep. Mary Still of Columbia, has filed two bills to be considered this year. One raises the cigarette tax on a single pack by 12 cents and the other by one dollar. Those proposals are likely to fail because of the Republican anti-tax majority.
But even if the cigarette taxes are raisen people still love to smoke their Winston cigarettes or Esse cigarettes.
Even Time magazine commented Missouri's cigarette taxes are the lowest in the country after South Carolina raised taxes. South Carolina went from seven cents to 57 cents to help pay for government programs.
Missouri's tobacco production was 12th in the nation 2002 with just 2,667 acres in the state set aside for tobacco. The same study said as much as 40 percent of America's tobacco for cigarettes is actually imported. South Carolina, 4th in the country as far as tobacco growing acreage, decided to raise taxes in a move which could jeopardize tobacco growers in their own state.
Raising taxes on cigarettes won't hurt Missouri's agricultural sector whatsoever. Rice, corn, soybeans and cotton are Missouri's most prominent cash crops.
Similar tax increases were proposed in 2002 and 2006. Those initiatives failed by 49 percent. Smokers, which number nearly a quarter of the adult population in Missouri, apparently form a huge voting bloc.
Schaefer's op-ed points out reducing the number of smokers would save money on Medicaid, reduce the number of babies born prematurely and lessen health care costs. Raising taxes on cigarettes is one way to do that but he points out the General Assembly may have to get more creative.
A blogger has suggested Jay Nixon should do what Minnesota Gov. Tim Pawlenty did. He was able to declare an increase in cigarette taxes a "health impact fee." If the General Assembly were to call it a "tax" then the populace would have to vote on it.
One bill submitted by Still raises taxes by only 12 cents and wouldn't require voter approval. Why not submit eight bills of 12 cents each? That's 96 cents in extra taxes per pack of cigarettes. Gradually increasing cigarette taxes each year would also be a way to get around the Hancock Amendment.
If the House believes paying $2 million for drug testing for welfare recipients is a good way to save money then the same should be said of cigarettes and tobacco products. Raising taxes on cigarettes won't hurt Missouri's economy at all and those citizens who don't smoke won't have to pay.

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