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House votes fails to increase the cigarette tax (Michigan House)
AP ^ | 5-19-04 | Amy F. Bailey

Posted on 05/19/2004 7:59:24 PM PDT by Dan from Michigan

House votes fails to increase the cigarette tax

By AMY F. BAILEY
The Associated Press
5/19/2004, 10:46 p.m. ET

LANSING, Mich. (AP) — The Michigan House failed Wednesday night to approve increasing the tax on a pack of cigarettes from $1.25 to $2 on July 1.

The House voted 44-55 on the bill. Measures need 55 votes for approval in the 110-member chamber where there is one vacancy. Twelve representatives didn't vote.

Instead of voting on a House plan to increase the tax only on cigarettes and not other tobacco products such as chewing tobacco, the chamber voted on Gov. Jennifer Granholm's proposal to increase the tax on all tobacco products.

House leaders abandoned their version of the bill late Wednesday after Granholm said she didn't support it, said Keith Ledbetter, spokesman for Republican House Speaker Rick Johnson of LeRoy.

Granholm floated a budget-balancing plan on Wednesday that would have increased the tax on all tobacco products by 75 cents to raise $97.1 million to help deal with a $250 million hole in this year's budget


TOPICS: Business/Economy; News/Current Events; US: Michigan
KEYWORDS: chew; cigarettes; cigarettetax; cigars; pufflist; smoking; tax; tobacco
Good.
1 posted on 05/19/2004 7:59:25 PM PDT by Dan from Michigan
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To: Dan from Michigan; *puff_list; Just another Joe; SheLion; metesky; Mears; Madame Dufarge; ...

A WIN for our side!!!!!!!!


2 posted on 05/19/2004 8:03:08 PM PDT by Gabz (Ted Kennedy's car has killed more people than my second hand smoke.)
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To: Gabz

THE RAGHEADS MUST SMOKE IN MICH.


3 posted on 05/19/2004 8:08:34 PM PDT by jocko12
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To: Gabz

Don't get too excited; it very likely will eventually pass. This vote was just posturing to try to get some minor concessions out of the Governor.


4 posted on 05/19/2004 8:09:05 PM PDT by Numbers Guy
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To: Numbers Guy

Posturing or not.....some one needs to wake up and stop balancing budgets on the backs of smokers.


5 posted on 05/19/2004 8:17:29 PM PDT by Gabz (Ted Kennedy's car has killed more people than my second hand smoke.)
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To: presidio9; Constitution Day; Tijeras_Slim; martin_fierro; Owl_Eagle; Dead Dog; sathers; Cooter; ...
I do not smoke...can't stand it...but I do not favor these blatant power and money grabs!

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To be added or subtracted, just ask. :o)

6 posted on 05/19/2004 8:22:36 PM PDT by TheBigB (Jaime Pressly: proof that God does indeed exist.)
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To: Gabz
some one needs to wake up and stop balancing budgets on the backs of smokers

Wasn't disagreeing, just saying that this wasn't a very meaningful vote. The House did have the votes to pass a more limited cig tax increase (just on cigarettes, not on all tobacco products). Granholm wouldn't go along with a partial increase, so they voted on her proposal and voted it down. The Michigan GOP is too tied in to too much of state spending (prisons, schools, hospitals and nursing homes, etc all have big constituencies among Republican contributors) to make the cuts necessary to avoid tax increases.

7 posted on 05/19/2004 8:24:01 PM PDT by Numbers Guy
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To: Dan from Michigan

What is this with million dollar shortfalls in state budgets? Don't they know how to budget? CUT SPENDING.


8 posted on 05/19/2004 8:29:03 PM PDT by buffyt (Kerry is a Flop Flipper, he Flips Flop, all the Flop that he Flips, is well Flipped Flop!)
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To: Numbers Guy

They had the votes for the more limited tax increase on the cigarettes ----probably because most of them smoke cigars.......


I realized you weren't disagreeing with me - but the point is that the states are spending millions of dollars screaming at tobacco users to stop, but instead of cutting that spending to cover budget shortfalls, they come after the tobacco users, generally cigarette smokers, to cover their butts.


9 posted on 05/19/2004 8:38:35 PM PDT by Gabz (Ted Kennedy's car has killed more people than my second hand smoke.)
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To: Dan from Michigan
What Michigan smokers are already paying with the taxes on Michigan cigarettes:

Michigan Smokers 

SMOKERS’ CONTRIBUTIONS TO THE STATE ECONOMY 
In 2001, Michigan smokers comprised only 25.6% (1) of the adult population in the state. Here is what they already pay because they choose to buy a legal product: 

Smokers Pay Excise Taxes (2) $ 566,758,605 

Smokers Pay Sales Taxes (2) $ 166,192,620 

Smokers Pay Tobacco Settlement Payments (3) $ 311,406,111 

$1,044,357,336 


Smokers’ Economic/Tax Profile 2001 

Income (1) 

Michigan smokers’ median household income $ 34,798 

Michigan nonsmokers’ median household income $ 44,811 

Working families pay more (1) 

35% of Michigan smokers had household incomes LESS than $25,000 

13% of Michigan smokers had household incomes EQUAL to or GREATER THAN $75,000 

The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments. 

Smoker excise tax/sales tax/tobacco settlement payments liability in 2002 (4) 

Total avg. paid per Michigan smoker in excise and sales taxes $ 390 

Cost per Michigan smoker for settlement payments to Michigan $ 166 

Total annual payments to Michigan per smoker $ 556 

Total annual payments to Michigan per nonsmoker $ 0 

Michigan Smoker Facts (5) 

Michigan FY2002 smoker payments were: 

Nearly 8 times larger than state excise taxes on alcoholic beverages in FY2001 ($136.6 million) 

Almost as large as Michigan’s FY2001 motor fuels tax collections ($1.074 billion) 

Larger than FY2001 motor vehicle license revenues ($837.6 million). 

The total FY2002 amount paid by smokers in Michigan could fund: 

FY2002 appropriations for: the Department of Education ($995 million) 

OR 

The Department of Environmental Quality ($458 million) AND Consumer and Industry Services ($557.5 million) COMBINED 

OR 

The State Police ($407.3 million) AND community colleges ($321.6 million) AND the Department of Natural Resources ($288.7 million) COMBINED. 

In 1997, smokers provided 10,767 jobs that paid an additional $19.6 million to the state in personal and corporate income taxes. (6) 


CIGARETTES DON’T PAY TAXES – MICHIGAN SMOKERS DO!! 

1. Centers for Disease Control’s Behavioral Risk Factor Surveillance System, 2001 

2. Orzechowski & Walker, Arlington, Virginia; from state revenue department 

3. PriceWaterhouseCooper 

4. U.S. Census Bureau, 2000 state population and Centers for Disease Control’s Behavioral Risk Surveillance System, 2001 

5. Tax and Budget Comparisons are from U.S. Census Bureau and the Michigan State Budget Office, Fiscal Year 2003 Budget Recommendations http://www.state.mi.us/dmb/budget/fy2003/contents.htm. 

6. American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States

10 posted on 05/20/2004 4:28:21 AM PDT by SheLion (Please register to vote! We can't afford to be silent.)
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To: Dan from Michigan
When your too spineless to cut spending, stick it to the smokers and tell them it's for their own good!
11 posted on 05/20/2004 4:29:40 AM PDT by SheLion (Please register to vote! We can't afford to be silent.)
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To: Dan from Michigan; *puff_list; Just another Joe; Great Dane; Madame Dufarge; Gabz; MeeknMing; ...

12 posted on 05/20/2004 4:30:28 AM PDT by SheLion (Please register to vote! We can't afford to be silent.)
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To: SheLion


13 posted on 05/20/2004 7:25:55 AM PDT by MeekOneGOP (There is ONLY ONE good Democrat: one that has just been voted OUT of POWER ! Straight ticket GOP!)
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To: TheBigB


14 posted on 05/20/2004 7:28:07 AM PDT by MeekOneGOP (There is ONLY ONE good Democrat: one that has just been voted OUT of POWER ! Straight ticket GOP!)
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To: MeekOneGOP

Kramer! LOL! That's so funny! hehe!


15 posted on 05/20/2004 10:15:08 AM PDT by SheLion (Please register to vote! We can't afford to be silent.)
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To: Dan from Michigan

from the New York Post 5/15/04

One-third blow off city cig tax

by David Seifman

A third of smokers here aren't paying the $ 1.50-a-pack cigarette tax-leading the city health commissioner to warn that smuggled smokes are "the single biggest threat" to the city's tough anti-smoking law.

"There has been a substantial increase in the purchase and consumption of nontaxed and smuggled cigarettes in New York City and other high taxed jurisdictions," Thomas Frieden told a Crain's New York breakfast forum.

"This is probably the single biggest threat in progress to tobacco control in New York City."

Cigareette sales in the five boroughs collapsed after the city increased its portion of the tax from 8c to $ 1.50 a pack on July 2, 2002.

In the next 12 months 182 million packs were sold-compared to 342 million in the previous 12 month period.

Sandra Mullin, a Health Department spokeswoman, said two-thirds of smokers who responded to a recent survey said they are buying their cigarettes legally.

"Others are purchasing cigarettes from sources such as Indian reservations, through the internet, from outside the U.S., from other states, through the mail," she said.

A pack of camels was selling for $ 6.75 yesterday at the smoke shop across from City Hall.

But on the internet, the upstate Seneca Indians were peddling a carton of 10 packs for $ 30.75 less than half the regular retail price.

Frieden called on the federal and state governments to enforce the law on Indian reservation sales. By law, city residents can purchase only two cartons of untaxed cigarettes at a time for personal use.

"The state does have the implementation authority," declared Frieden. "They went to the Supreme Court to get it and they're not using it."

end of article

a Site from which there is a link to the Native American's site (scroll down at the site):

http://www.adrenalineflow.com/pages/3/index.htm


16 posted on 05/22/2004 10:29:32 AM PDT by Freedom of Speech Wins
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