Posted on 02/03/2006 12:57:31 AM PST by WKB
JACKSON - The Mississippi House, by an overwhelming 88-34 margin Thursday, voted to increase the tax on small cigarettes manufacturers by 43 cents per pack.
The tax, supporters said, would "even the playing field" between the small companies and the large cigarette manufacturers.
States sued the large tobacco companies in the 1990s in an attempt to recoup government money spent on the treatment of tobacco-related illnesses. In settling the suit, the tobacco companies agreed to pay billions of dollars back to the states.
House Ways and Means Chairman Percy Watson, D-Hattiesburg, said the small companies, many of which did not exist before the lawsuit, don't have the expense of the settlement costs and therefore have an unfair advantage over the large cigarette manufacturers.
The tax, which would generate about $15 million annually, would be spent on the state-owned nursing homes for military veterans and to establish a cancer research center at University Medical Center.
Several veterans watched the debate on the legislation in the House gallery. At times the debate became emotional as supporters of the legislation said the bill was needed to provide a steady stream of money for the chronically underfunded nursing homes
Opponents of the legislation said it was unfair to tie the tax to the nursing homes.
"This is an effort to put those in a box who might think differently" and be opposed to the tax, said Rep. Gale Gregory, R-Louisville.
Gregory and others argued that the nursing homes should be adequately funded out of the general fund.
The bill passed the House by more than the two-thirds majority needed to override the veto of Gov. Haley Barbour who said he opposes all tax increases.
Barbour already has vetoed legislation that would phase out the 7 percent food tax and increase the tax on a pack of cigarettes from 18 cents to $1. The vetoed bill is pending in the Mississippi Senate where Lt. Gov. Amy Tuck, who proposed the legislation is trying to garner the votes for an override.
Let me try to understand this. The State of MS won a lawsuit against Big Tobacco and it forced Big to raise prices. Now Small is able to sell for less and MS wants to TAX Small's customers to level the playing field???
If they really want to be fair, why not give Big's money back?
Well, I guess it's all in the eye of the beholder....;-)
To be fair, our governor has been nothing but a friend of smokers. He has vetoed every tobacco tax increase proposed.
That's true. Also, there was a democrat President who cut taxes once. But it's sure not the norm.
Since part of the agreeement was the Big's could pass the settlement costs 100% onto consumers, how about giving smokers THEIR money back?
the power to tax is the power to destroy. mississippi just gave us an illustration on how to do it.
Thanks for the ping!
Now, I think they are gonna really piss off Haley. I think he meant it when he said he would not sign any bill increasing taxes. I think if it passes, it will only be a veto override.
Now, I think they are gonna really piss off Haley.
I thought the same thing.
The Dims always want to help the poor.
Guess who buys the cheap smokes they want to tax.
"The tax, which would generate about $15 million annually, would be spent on the state-owned nursing homes for military veterans and to establish a cancer research center at University Medical Center."
It will be interesting to see if THAT happens.
I'm not gonna hold my breath, though.
Have fun watching the grocery tax go away.
It will be like watching grass grow.
And, that is IF it happens.
I don't like the 'Rats in the legislature.
You surely have been busy. ;o)
I just thought of something.
Do the Indians sell cigarettes on the reservations?
I bet they do, especially since they have casinos.
Aren't they tax-free, or only have some taxes?
If so, then everyone can stock up on the reservations.
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