Michigan governor, lawmakers proposes 50-cent cigarette tax increase amid budget crunch

Associated Press / SFGate

[RCW2001]

Michigan governor, lawmakers proposes 50-cent cigarette tax increase amid budget crunch

Wednesday, June 19, 2002
©2002 Associated Press

URL: http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2002/06/19/financial2256EDT0434.DTL

(06-19) 19:56 PDT LANSING, Mich. (AP) --

Gov. John Engler and legislative leaders on Wednesday proposed increasing the cigarette tax by 50 cents.

The increase would raise the state tax on cigarettes from 75 cents to $1.25 per pack, making it the nation's third-highest, according to the National Conference of State Legislatures. The per-pack tax is $1.50 in New York, and $1.42 in Washington state.

It also would affect other tobacco products, such as chewing tobacco.

The tax hike is expected to generate $107 million a year for the school aid fund and $154 million for other parts of the budget, said Engler spokeswoman Susan Shafer.

The additional revenue would help lawmakers balance the $350 million general fund shortfall for the upcoming budget year.

House leaders were considering taking up the cigarette tax increase proposal.

©2002 Associated Press  

[Dan from Michigan]

Pathetic.

I'll be calling my reps on this tomorrow.

Let's see. We have a defecit, and the legislature thanks to Dan DeGrow and John Cherry raised their salaries. Now they want to pass a tax increase on smokes. No way. At least my Senator(Garcia) told them no way last time on this tax. BTW - Thanks a lot Engler, I'm sure you are helping Posthumus campaign with this BS....:(

[Tall_Texan]

Heck, that's nothin'. In Texas, a recent poll showed 70% favor a $1.00 per pack tax increase on cigarettes, including 60% of Republicans.

Why not? They are an easy target right now and the majority who DON'T smoke would rather see somebody else get hit with the tax bill. Don't think the pols didn't notice this one.