Posted on 05/25/2009 6:53:38 AM PDT by reaganaut1
For years tobacco companies have successfully fought off attempts by California lawmakers and health groups to increase the cigarette tax. But next month, as the state grapples with the worst financial crisis in recent history, that may change.
Lawmakers will consider a proposal to hike cigarette taxes by $1.50 per pack and raise $1.2 billion annually. During the last decade, cigarette makers have spent tens of millions of dollars to kill 14 straight attempts to make smokers pay more.
But with the state facing a staggering $21.3-billion deficit and due to run out of cash in July, the tobacco tax could have a better chance of passing the Legislature.
"Given the serious budget shortfall we face, this is the year to pass the tobacco tax," said Sen. Alex Padilla (D-Pacoima). "It is needed now more than ever."
Padilla wrote the current proposal with Senate leader Darrell Steinberg (D-Sacramento), but even with Steinberg's support, it faces an uphill battle. The tobacco industry sees California as a crucial market and a trendsetter for anti-tobacco ideas that can spread through the country, said Beverly May, regional director of Campaign for Tobacco Free Kids, a Washington anti-smoking group.
"The tobacco companies view California very much as a battleground state," she said. "California is a state that they look at as important to do everything they can to have influence in any way they can."
Frank Lester, a spokesman for Reynolds American Inc., said proposals to raise tobacco taxes in California have failed in part because the state's residents are compassionate and see the tax as unfair.
(Excerpt) Read more at latimes.com ...
The supposed revenue gain of $1.2 billion would fill about 5% of the budget gap, and I bet the revenue estimate ignores the increased purchases of cigarettes from out of state and on the black market.
The article says California has lower cigarette taxes than many other states. How many LA Times articles have cited California's top-ranking income and sales taxes are reasons for tax cuts?
If this passes what would a pack cost?
Usually the poor are the ones who get hit with the higher taxed when it come to smoking.
The TJ Trolley will turn into a cig smuggling route. We’ll have homeless people walking back and forth across the border just to carry a couple packs.
All they are doing is strengthening the foundations for a robust cigarette smuggling business. It’s simple economics...and they will never see increased revenues from a ridiculous move like this...
I was told just the other day by a local sheriff's deputy that burglary of mom and pop stores and convenience stores has exploded with the target being cigarettes. The burglars can turn them into cash very quickly.
$6.50 to $7/pack. I hope they raise them to $10/pack to really piss off the folks who just spanked them in voting down their budget initiatives.
If the citizens of Ca. won’t fight for their state let it become a part of Mexico again.
$1.50 tax hike? Stupid liberals. All they would have to do is raise the tax by $30.00 per pack, and that would erase the whole deficit. It’s so simple.
It’s 7.50 now for merits, 4.75 for camels.
“voting down their budget initiatives.”
You mean Tax Increases for additional years.
The congress already passed the tax increases for this year, we are already paying for them.
The prop’s were to extend them pass this year.
Here it comes. Their voter initiatives failed. Now they’re going to stick it to everyone.
You’re next.
And raise the minimum wage to $100/hr and end poverty!
Check out this study by the Cato Institute:
“For years tobacco companies have successfully fought off attempts by California lawmakers and health groups to increase the cigarette tax. But next month, as the state grapples with the worst financial crisis in recent history, that may change.”
That statement is Bullscoot.
Taxes were increased multiple times here in California in recent years. Sometimes taxes were increased inside of a few months of one another to the point that last I paid for a carton of cigarettes was $35.71. A carton would last ten days. Then came the Dems SCHIP legislation that tossed the taxes even higher.
I smoked for fifty years because I enjoyed smoking. I quit smoking cold turkey after fifty years because I wasn’t going to pay for Democrats pet projects that I disagree with.
Advice to many smokers out there from one whom has been there is that it isn’t as difficult to quit as is made out to be. Just do it if that’s what you wish to do.
If you really want some action then I propose a dollar a can tax on beer.
But you said, I hope they raise them to $10/pack to really piss off the folks who just spanked them in voting down their budget initiatives. So are you giving all the credit for the successful revolt to smokers? Or do you really think non-smokers will become PO'd at this new tax, which won't affect them, rather than react by going, "Whew! Dodged that tax."?
Then they pass all sorts of new taxes that when added together are more than the "stimulus check" and they wonder why people didn't go out and buy things with the supposed "windfall".
Tax cuts would be a better incentive, but the political betters don't get the credit and the votes.
It’s a real shame. my cigars have doubled in price and just went up another 4 bucks, just recently.
*sigh*... I am now ordering on internet, and if we all do that, cigar shops, will go out of business, here in Los Angeles. what a shame.
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