Huntsman wants to push cigarette tax to $3 (Utah)

Salt Lake Truibune ^ | 1/07/09 | Robert Gehrke

[colorcountry]

Gov. Jon Huntsman Jr. endorsed a $2.30 tax increase on a pack of cigarettes this morning, giving Utah the highest state cigarette tax in the country with a goal of wiping out the remaining state sales tax on food.

"I think that's a perfectly fair tradeoff," the governor said after publicly embracing the tax hike for the first time and going further than previous legislative proposals. Huntsman's target would more than quadruple the existing 70-cent tax on a pack of smokes.

Legislative leaders were open to the idea, and said it will be among the topics discussed in the upcoming legislative session.

House Speaker Dave Clark, R-Santa Clara, said he would be supportive of the tobacco tax increase as long as there was an equal tax cut.

"I think you could quickly move [to raise] the tobacco tax to remove the sales tax on food," said Clark, speaking before a United Way-sponsored discussion of legislative priorities.

Senate President Mike Waddoups, R-Taylorsville, said the governor's proposal will need to be batted around.

"I've always been an advocate for removing the state tax on food, but as I listen to my caucus, I'm not sure they are," he said. "A lot of the body has absolutely campaigned on the promise of not raising taxes. … It's an alternative that needs to be discussed."

Sen. Allen Christensen, R-North Ogden, is already having a bill crafted that would raise the tax on a pack of cigarettes to $2. Huntsman's

proposal would raise it to $3. A pack of cigarettes now costs between $3.50 and $5 a pack.

As of last August, New York had the highest state cigarette tax in the nation at $2.75, according to figures compiled by the Campaign for Tobacco-Free Kids. However, many cities across the country impose their own cigarette tax, making the cost of a pack much higher. The national average was $1.18.

Michael Siler, director of governmental affairs for the Utah Chapter of the American Cancer Society, said he has known for a while the governor supported raising the tobacco tax, but didn't know how high he would set the target.

"As far as we're concerned, it's a good thing," he said, saying it would encourage smokers to kick the habit and could help cover the smoking related costs.

Cigarette tax supporters have said that every 10 percent increase in the cost of a pack of cigarettes, smoking rates would fall by 6.5 percent among youth and 2 percent among adults.

The Utah Legislature and the governor reduced the state portion of the sales tax on food from 4.75 percent to 2.75 percent effective January 2007 and then down to 1.75 percent as of January 2008.

Huntsman said that the $3 per pack tax would bring in $120 million to $150 million in revenue, beyond the $60 million the current tax generates. Huntsman said that would be "more than enough" to eliminate the sales tax on food. That would cost about $75 million.

"It would more than cover that remaining portion of the sales tax on food and I think it would show a great commitment to the people of the state if we would think creatively about how to get something like that done," Huntsman said.

Under Christensen's proposal, which the American Cancer Society and a network of other anti-smoking and public health advocates had supported, most of the money would have gone to cover health costs and toward smoking cessation programs.

Siler said they would still like money to go to those purposes, but the group recognizes that in these tough budget times it might not happen. He said his organization will still make the case to legislators this year and in future years that it would be a worthwhile purpose for the new revenue.

Huntsman said that, under his proposal, there would be plenty of money left for cessation and health programs.

[colorcountry]

Some so-called Repubs have been tossing out the name of Huntsman for our 2012 Presidential nominee. Blech.....

We don't need no more nanny-staters.

Some so-called Repubs have been tossing out the name of Huntsman for our 2012 Presidential nominee. Blech.....

We don't need no more nanny-staters.

[Foolsgold]

Was I mis-informed or did I hear that ALL of the States and the fed are crying because the gasoline tax income is dropping due to less miles driven and mandated higher milage cars??? Naw it had to be my imagination

[Hoffer Rand]

Amen, sister.

[Just another Joe]

Realize that in states that mandate a vehicle safety inspection the mileage of the car is recorded.
Why go for the tax on a gallon of gasoline when different cars get different mileage.
Go for a tax on miles driven and you get everybody.

LEVEL THE PLAYING FIELD!

[FrankR]

"...decrease of the food tax is that when they dropped the tax on groceries, they raised the tax on "prepared" food, so eating out became more expensive. "

Actually, what the greedy bastards in government are doing is watching the markets, and whatever is selling the best, or whichever firm is makeing good profits, they figure out how to tax it. It's like, "OK peasants, if you have money to throw away eating out and smoking cigarettes, then you have the free money to give to the cause...the government."

That sort of takes away our right to the "pursuit of happiness", as paying tax on everything I enjoy does not make me very happy.

The only solution would be to stop doing whatever their newest designer tax is levied on, and let them dry up. Of course that would be never-ending, and that would get them around to taxing air that much sooner.

Here's what I would suggest...a 45% tax on Government Bailouts. Someone wants a million dollar bailout...grant it, but withhold $450,000 in income taxes.

Makes sense to me...if I win the lottery, they withold federal and state taxes..it's income. A bailout is NOT a loan...it's a gift...If I give my son a million dollars, he has to pay taxes on it, as income.

To thine ownself be true.

[Hoffer Rand]

Actually, what the greedy bastards in government are doing is watching the markets, and whatever is selling the best, or whichever firm is makeing good profits, they figure out how to tax it. It's like, "OK peasants, if you have money to throw away eating out and smoking cigarettes, then you have the free money to give to the cause...the government."

That's exactly what they're doing. They did the same thing with booze. You can only get booze at a state liquor store. Used to be that sales tax was included in the price, so you only paid the listed price. Then they got the bright idea to say that sales tax wasn't going to be included in the listed price any more. The listed prices went down by a few cents for a couple of weeks, when they "took the taxes out," then went right back to where they had been, only now you have to pay the sales tax on top. Fascinating that this move came right on the heels of a report that liquor sales in Utah were up.

[Little Bill]

Huntsman is turning out to be a bigger jerk than Levitt(Sp). Running on his fathers name.

[colorcountry]

I knew Dixie Leavitt (Mike’s father). ... what can I say? I didn’t necessarily like either of them.

[Lokibob]

“a 45% tax on Government Bailouts. “

Too late... In Utah, you add Federal tax return money to your State Taxable income, and pay taxes on it. It isn’t 45%, but damned if it isn’t taxed.

Something else in Utah.. You pay taxes on taxes. Cigarettes are taxed separately by a law, so a carton costs, for example $20 plus a $10 cigarette tax. So, when you buy a carton it is $30, BUT THEN they add a 6% sales tax on the total $30. A tax on a tax.

Its madness (by the way, I don’t smoke, but it ticks me off)...

....Bob

[Lokibob]

Read my post #29 for tax on tax.

Thanks for the tip on another example of Tax on tax.

....Bob

[GreyMountainReagan]

“Smokers are nasty sub-humans in the eyes of a Mormon.”

Kind of a broad brush to paint with.

2nd hand smoke has become the smell of freedom to me. Not joking.

I am so sick of government forcing behavior. Speaking generally lack of freedom is much worse fate than smoking or even cancer for that matter.

[hotshu]

To quote George Harrison:

“Let me tell you how it will be.
There’s one for you, nineteen for me.

‘cause I’m the Taxman, yeah I’m the Taxman.

Should five percent appear too small,
be thankful I don’t take it all.

‘cause I’m the Taxman, yeah I’m the Taxman.

If you drive a car, I’ll tax the street.
If you try to sit, I’ll tax your seat.
If you get too cold, I’ll tax the heat.
If you take a walk, I’ll tax your feet.

Don’t ask me what I want it for,
if you don’t want to pay some more.

‘cause I’m the Taxman, yeah I’m the Taxman.

Now my advice for those who die,
declare tose pennies on your eyes!

‘cause I’m the Taxman, yeah I’m the Taxman.

AND YOU’RE WORKING FOR NO ONE BUT ME!”

[albie]

“2nd hand smoke has become the smell of freedom to me. Not joking”.

...funny you say that. When my wife says “Ewww. I smell cigarette smoke” my kids say “We smell freedom Mom”. (of course, I taught them that. awful aren’t I?)

[TigersEye]

nanny state pinger ping

[GreyMountainReagan]

“Smokers are nasty sub-humans in the eyes of a Mormon”
++++++++++++++++++++++++++++++++++++++++++++++++++++++

Well, this is one Mormon that has grown to love to smell cigarette smoke because of how it has come to represent freedom. I know you were speaking in hyperbole when you said that Mormon’s think smokers are nasty sub-humans, since most know that subhuman is a term used by people to describe others that they want to exterminate

Among my co-workers and friends I see plenty of Mormons and non Mormons who despise smoking and have come to think that smokers almost deserve any cancer they contract.

To me it seems to be more of a liberal/conservative thing.

Liberals seem to despise the following:
smokers,
overweight people,
small town people,
Christians,
people who don’t believe in global warming,
people who don’t march lockstep with the MSM,
people who don’t enjoy paying taxes,
people who drive SUV’s (SUV’s are the next cigarette)
people who homeschool,
people who own guns, (guns are a bellweather)
people who enjoy popular sports such as NFL and NASCAR
people who have more than 1 child,
etc, etc, etc.

The more of the above qualities you have the more liberals despise you. Let’s see, I homeshool, don’t enjoy taxes, drive a 1-ton Van, enjoy popular sports, have more than 1 child, am Christian (at least I think I am), live in a small town, don’t follow the MSM, slightly overweight, don’t believe in Global warming, own guns, crap, the only thing on that list I am not? Smoker.

[Eric Blair 2084]

Don’t be a libtard and stop and think for a moment.

Q: If and when the social engineering experiment to coerce smokers to quit succeeds, where is the state going to get the money?

A: You.

[Eric Blair 2084]

Big Brother, Nanny State, Grant Junkie, Bogus Study, Junk Science, Social Engineering, Egalitarian, Central Planning, Sheeple Control, Health Nazi, Socialism, Collectivism

This is an extremely low volume ping list. 6 per week max. To be added to or deleted from this ping list, please click one of the following:

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We the People Sheeple of the United States Nanny State, in Order to form a more perfect Union Socialist Utopia, establish Justice Socially engineer a country of non smoking, physically fit, teetotalers, insure domestic Tranquility Smoking bans in bars, limits on unhealthy food and social drinking, provide for the common defense Universal Healthcare, promote the general Welfare health of the population whether they like it or not, in order to save above mentioned Universal Healthcare entitlement program from bankruptcy, and secure the Blessings of Liberty Dependency to ourselves progressive liberals and our Posterity Hitler Youth who we brainwash through public school education, do ordain decree and establish this Constitution for the United States of America. Nanny State of Liberals.

[Eric Blair 2084]

Yep. You’ve summarized it pretty well.

The common denominator is CONTROL.

If they can’t control you, you are the enemy.

[Eric Blair 2084]

The high tax and behavior control experiment worked so well in the Democratic People’s Republic of NJ, NY, MA. They are still a gazillion dollars in debt even after trying to coerce sheeple to eat right, exercise and quit smoking. They thought it would solve all of their problems by reducing their state Medicare and Medicaid costs.

Retards in the Utah legislature want to emulate them.

It just proves my point. Everyone is retarded. I’m retarded, you’re retarded. We’re all human.

Our neighbors/local and state legislators are retarded.

Conservatives understand that people are retarded and don’t want to give their neighbors/legislators more power. Liberals want to hand their lives over to these retards.*

*I chose the most offensive non politically correct word to get my point across.

[Alamo-Girl]

Thanks for the ping!