CA: Coalition seeks to fund health programs by raising cigarette tax (300%)

ap on Bakersfield Californian ^ | 12/13/05 | Jennifer Coleman - ap

[NormsRevenge]

SACRAMENTO (AP) - A coalition of health organizations wants to increase the tax on a pack of cigarettes by 300 percent in California to boost funding for hospital emergency care, nursing education, cancer research and a variety of other health programs.

The per-pack tax would jump by $2.60 under an initiative the coalition hopes to have on the November 2006 ballot, supporters said Tuesday. If voters approve the proposal, California's total tax on a pack of cigarettes would rise to $3.47, the highest in the nation.

The initiative combines two competing tobacco tax measures that had been in circulation.

One campaign was led by the California Hospital Association and would have added a $1 tax, while the other was spearheaded by the American Cancer Society would have raised $1.50 per pack.

The new campaign includes those organizations, plus the American Lung Association of California, California Emergency Nurses Association, American Heart Association, Children Now, the California Association of Physician Groups, the Campaign for Tobacco Free Kids, among others.

Revenue from the extra tax would be directed to various health programs, including cancer screening, prevention and research, low-cost children's insurance, and tobacco education and cessation. Supporters also hope it will provide more money for emergency care and clinics.

Because the extra per-pack tax would be expected to curb sales, the initiative also allots $159 million a year to offset any loss of revenue to Proposition 10 programs. Proposition 10, approved by voters in 2004, added a tax of 50 cents per pack to fund early childhood education.

The initiative also would give money to local law enforcement to enforce tobacco control laws, which critics said would be needed to offset an expected rise in black-market cigarettes.

Raising the tax by such a large amount might lead some people to quit smoking, said Craig Fishel, spokesman for North Carolina-based R.J. Reynolds Tobacco Co.

"But more likely what you have is people looking for other means to get their cigarettes, usually from other states or on Indian reservations where excise taxes aren't enforced," he said.

The increased revenue that the initiative's supporters are touting also will be short-lived, said Larry McCarthy, president of the California Taxpayers Association, an anti-tax group.

If people can't afford to smoke, they'll quit or buy illegal cigarettes, reducing the amount of taxes collected, he said.

"It's very ill-advised. It will do nothing but damage to the tax structure and is not going to lead to higher levels of health care services," McCarthy said.

The tax is projected to raise $2.7 billion annually if cigarette sales remain at the current level, but the higher price is expected to cut sales by about 8 percent a year, supporters said.

Having fewer smokers, especially among young people, is one of the proposal's goals, said Paul Knepprath, vice president of the American Lung Association of California.

"We know that increasing the price of cigarettes is one of the most efficient ways to stop kids from smoking," he said.

He said most adult smokers started when they were under 18.

[NormsRevenge]

How cigarette tax money is spent

http://www.bakersfield.com/state_wire/story/5764283p-5781408c.html

The Associated Press

A coalition of California health groups has proposed a $2.60-per-pack tax hike on cigarettes and wants to put the issue before voters next November. California currently collects 87 cents per pack.

How money from the current tax is spent:

- 50 cents goes to Proposition 10 funds for early childhood development; 20 percent of this amount goes to the state, with 80 percent going to counties.

- 25 cents goes to Proposition 99 funds, contributing to hospital services, health education, physician services and research.

- 10 cents goes to the state general fund.

- 2 cents goes for breast-cancer research.

How money from the proposed tax of $2.60 per pack would be spent:

- $1.37 (53 percent) would be placed in a health treatment and services account, with three-quarters of this amount going toward emergency and trauma care. The rest would be divided among nursing education, community clinics, prostate cancer treatment and tobacco-cessation services.

- $1.10 (42 percent) would fund a health maintenance and prevention account, with half of the money going to California Healthy Kids, a government-funded low-cost health insurance program for children. The other half would be split among the following: grants to local law enforcement to enforce tobacco laws; treatment programs geared toward tobacco education, asthma and heart disease; and screening programs for stroke, obesity, breast cancer and cervical cancer.

- 13 cents (5 percent) to a health-research account that would include a statewide cancer surveillance system and studies into tobacco-related diseases, breast cancer and lung cancer.

[dropzone]

The black-marketers must be smiling big-time.

[Amerigomag]

California sin taxes. The savior of Mexico's poor and a sound insurance policy against the communicable disease pandemic they might initiate as their numbers swell in California.

[headstamp]

"If people can't afford to smoke, they'll quit or buy illegal cigarettes, reducing the amount of taxes collected, he said.

"It's very ill-advised. It will do nothing but damage to the tax structure and is not going to lead to higher levels of health care services," McCarthy said."

But that isn't the point. They just need to get this measure passed. The funds will come from somewhere else should the cigarette tax not be enough. They are simply looking for an "in" for their proposal. They know it won't be done away with once it's started.

[DuckFan4ever]

The black-marketers must be smiling big-time.

That's for sure. Creating more criminals when their is an opportunity. The tax collected will definitely drop if a huge increase in taxes is imposed.

[Myrddin]

The word "coalition" is a code word for Marxists banding together. There is no end to the "good deeds" they can accomplish with other people's money.

[gathersnomoss]

Redistribution of wealth. I don't smoke.

[stopem]

A Republican Governor raising taxes. Whats next?
And there were some who wanted this guy for President.

Raise taxes for the care and feeding of illegals.

[Gabz]

Another "They're at it again" ping.

When are these people going to learn to stop balancing state budgets on the backs of a small minority of the population?

Could you imagine the OUTRAGE from the likes of Robber Reiner (and the rest of his anti-smoker elitist colleagues) if a 300% tax increase was suggested for purchases made by illegal aliens?????

But it's just fine to stick it to law abiding citizens who are treated worse than dirt as it is.

[17th Miss Regt]

Because the extra per-pack tax would be expected to curb sales, ...

This is ridiculous. Everyone knows that if you increase the taxes on an item, there will be absolutely no effect on the total sales of the item. This is Liberal Economics 101.

[Fierce Allegiance]

Good way to havily increase blackmarket trafficking. Just ask NYC.

[Wiseghy]

"California Healthy Kids"

Currently, families or single parents making less than 42k a year can enroll their children in this program. This means that just about any low-middle income parent can skip private coverage and sign up.

Unsurprisingly, the state is so lousy at enrolling people, there are still many who aren't on it and the state typically misses out on millions in fed matching funds.

This is a "feel good" back door way into a socialized plan, with generous benefits and little accountability or cost to those on it. I know lots of employees who waive paying even a little for their families' coverage to get it.

[atomic_dog]

A Republican Governor raising taxes. Whats next?

Illustrating once again the primary difference between Dems and Pubs. The Dems want to drive the train off the cliff as fast as possible while the Pubs insist on doing the speed limit.

I must say that I am inclined to support the Dem point of view. Let's get the upcoming civil war over with asap and get on with the process of constitutional restoration.

[The Foolkiller]

I'm with you now, pal. Bring on Sweet Hill & Slick Will again, and get Dems back in control of congress. Screw it-I've had it with the RHINOS, too. Might as well go over the cliff, and then begin to rebuild.

[microgood]

More pigs lining up to the public trough. One thing is for sure, the money will pay for inflated salaries and travel boondoggles for the heads of those organizations and precious little will ever reach the advertised purpose.

[DumpsterDiver]

Could you imagine the OUTRAGE from the likes of Robber Reiner (and the rest of his anti-smoker elitist colleagues) if a 300% tax increase was suggested for purchases made by illegal aliens?????

Try adding a tax like that onto tickets to see movies and he just might keel over from an aneurysm. (Not that I would care.)

[Mears]

"If people can't afford to smoke, they'll quit or buy illegal cigarettes, reducing the amount of taxes collected, he said. "

---

This says it all. I cannot imagine anyone being silly enough to pay those taxes.

Truckloads of cigs will be brought into California from other states.

[SheLion]

All the billions being fed into CA from the MSA by smokers who pay taxes on cigarettes.  They are spending this money on stupid pet programs and not on the health programs it was intended for.  What a bunch of idiots!

Read what California smokers are already contributing to the state economy:

Read how much smokers are contributing to their state economy.  And some have the nerve to say smokers are the reason for higher health costs.  Read this and know the truth.

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[SheLion]

Well, here is one alternative:

Can't stand the high taxes?

Afraid to order off of the Internet?

Then start rolling your own!!! I find everything but the machine downtown at the local Smoke Shop.  Also, Rite Aid and grocery stores also sell the bags of tobacco and the filtered tubes.

I roll out a beautiful carton for a little under $8 dollars.  Premiums in my state are now up to $45-$50 a carton.  Can you imagine the money I have saved over the past 4 years since I now roll my own?  It's mind boggling.

under $50.00

$5.75 a bag

$1.99 for 200 filtered tubes

and

Smokers United

Roll Your Own Tobacco Store

Roll Your Own Magazine

[FunkyZero]

Pi** on them. I make my own. Almost all of my money goes to the actual tobacco farmer rather than the fed. I takes me about 1 1/2 hrs to make a carton at a cost of roughly 8 bucks.