House votes fails to increase the cigarette tax (Michigan House)

LANSING, Mich. (AP) — The Michigan House failed Wednesday night to approve increasing the tax on a pack of cigarettes from $1.25 to $2 on July 1.

The House voted 44-55 on the bill. Measures need 55 votes for approval in the 110-member chamber where there is one vacancy. Twelve representatives didn't vote.

Instead of voting on a House plan to increase the tax only on cigarettes and not other tobacco products such as chewing tobacco, the chamber voted on Gov. Jennifer Granholm's proposal to increase the tax on all tobacco products.

House leaders abandoned their version of the bill late Wednesday after Granholm said she didn't support it, said Keith Ledbetter, spokesman for Republican House Speaker Rick Johnson of LeRoy.

Granholm floated a budget-balancing plan on Wednesday that would have increased the tax on all tobacco products by 75 cents to raise $97.1 million to help deal with a $250 million hole in this year's budget

I do not smoke...can't stand it...but I do not favor these blatant power and money grabs!

Ping to the newly-created REPUBLICAN PARTY REPTILE Ping list, named after our spiritual founder, P.J. O'Rourke. What is the Republican Party Reptile? It is a creature of the eighties. It’s neoconservatism with its pants down around its ankles, the Rehnquist Supreme Court on drugs, a disco Hobbes living without shame or federally mandated safety regulations. The Republican Party Reptile supports a strong defense policy, but sees no reason to conduct it while sober. The RPR believes in minimum government interference in private affairs—unless the government brings over extra girls and some ice. In short, the RPR is the new label that our political spectrum has been crying out for—the conservative with a sense of humor and a healthy dose of depravity.

To be added or subtracted, just ask. :o)

some one needs to wake up and stop balancing budgets on the backs of smokers

Wasn't disagreeing, just saying that this wasn't a very meaningful vote. The House did have the votes to pass a more limited cig tax increase (just on cigarettes, not on all tobacco products). Granholm wouldn't go along with a partial increase, so they voted on her proposal and voted it down. The Michigan GOP is too tied in to too much of state spending (prisons, schools, hospitals and nursing homes, etc all have big constituencies among Republican contributors) to make the cuts necessary to avoid tax increases.

What Michigan smokers are already paying with the taxes on Michigan cigarettes:

Michigan Smokers

SMOKERS’ CONTRIBUTIONS TO THE STATE ECONOMY
In 2001, Michigan smokers comprised only 25.6% (1) of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

Smokers Pay Excise Taxes (2) $ 566,758,605

Smokers Pay Sales Taxes (2) $ 166,192,620

Smokers Pay Tobacco Settlement Payments (3) $ 311,406,111

$1,044,357,336

Smokers’ Economic/Tax Profile 2001

Income (1)

Michigan smokers’ median household income $ 34,798

Michigan nonsmokers’ median household income $ 44,811

Working families pay more (1)

35% of Michigan smokers had household incomes LESS than $25,000

13% of Michigan smokers had household incomes EQUAL to or GREATER THAN $75,000

The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.

Smoker excise tax/sales tax/tobacco settlement payments liability in 2002 (4)

Total avg. paid per Michigan smoker in excise and sales taxes $ 390

Cost per Michigan smoker for settlement payments to Michigan $ 166

Total annual payments to Michigan per smoker $ 556

Total annual payments to Michigan per nonsmoker $ 0

Michigan Smoker Facts (5)

Michigan FY2002 smoker payments were:

Nearly 8 times larger than state excise taxes on alcoholic beverages in FY2001 ($136.6 million)

Almost as large as Michigan’s FY2001 motor fuels tax collections ($1.074 billion)

Larger than FY2001 motor vehicle license revenues ($837.6 million).

The total FY2002 amount paid by smokers in Michigan could fund:

FY2002 appropriations for: the Department of Education ($995 million)

OR

The Department of Environmental Quality ($458 million) AND Consumer and Industry Services ($557.5 million) COMBINED

OR

The State Police ($407.3 million) AND community colleges ($321.6 million) AND the Department of Natural Resources ($288.7 million) COMBINED.

In 1997, smokers provided 10,767 jobs that paid an additional $19.6 million to the state in personal and corporate income taxes. (6)

CIGARETTES DON’T PAY TAXES – MICHIGAN SMOKERS DO!!

1. Centers for Disease Control’s Behavioral Risk Factor Surveillance System, 2001

2. Orzechowski & Walker, Arlington, Virginia; from state revenue department

3. PriceWaterhouseCooper

4. U.S. Census Bureau, 2000 state population and Centers for Disease Control’s Behavioral Risk Surveillance System, 2001

5. Tax and Budget Comparisons are from U.S. Census Bureau and the Michigan State Budget Office, Fiscal Year 2003 Budget Recommendations http://www.state.mi.us/dmb/budget/fy2003/contents.htm.

6. American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States

from the New York Post 5/15/04

One-third blow off city cig tax

by David Seifman

A third of smokers here aren't paying the $ 1.50-a-pack cigarette tax-leading the city health commissioner to warn that smuggled smokes are "the single biggest threat" to the city's tough anti-smoking law.

"There has been a substantial increase in the purchase and consumption of nontaxed and smuggled cigarettes in New York City and other high taxed jurisdictions," Thomas Frieden told a Crain's New York breakfast forum.

"This is probably the single biggest threat in progress to tobacco control in New York City."

Cigareette sales in the five boroughs collapsed after the city increased its portion of the tax from 8c to $ 1.50 a pack on July 2, 2002.

In the next 12 months 182 million packs were sold-compared to 342 million in the previous 12 month period.

Sandra Mullin, a Health Department spokeswoman, said two-thirds of smokers who responded to a recent survey said they are buying their cigarettes legally.

"Others are purchasing cigarettes from sources such as Indian reservations, through the internet, from outside the U.S., from other states, through the mail," she said.

A pack of camels was selling for $ 6.75 yesterday at the smoke shop across from City Hall.

But on the internet, the upstate Seneca Indians were peddling a carton of 10 packs for $ 30.75 less than half the regular retail price.

Frieden called on the federal and state governments to enforce the law on Indian reservation sales. By law, city residents can purchase only two cartons of untaxed cigarettes at a time for personal use.

"The state does have the implementation authority," declared Frieden. "They went to the Supreme Court to get it and they're not using it."

end of article

a Site from which there is a link to the Native American's site (scroll down at the site):

http://www.adrenalineflow.com/pages/3/index.htm

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