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House set to reconsider increasing cigarette tax (Another vote tomorrow - Here we go again)
AP ^ | 5-26-04 | Amy F Bailey

Posted on 05/25/2004 10:46:34 PM PDT by Dan from Michigan

House set to reconsider increasing cigarette tax
By AMY F. BAILEY
The Associated Press
5/26/2004, 12:01 a.m. ET

LANSING, Mich. (AP) — A proposal to increase the Michigan cigarette tax from $1.25 to $2 a pack as part of a budget-balancing effort is on the move again in the state Legislature.

House leaders said Tuesday that they expected the chamber to vote on the measure during its Wednesday afternoon session.

Last week, the chamber came up 11 votes short of the 55 needed to approve the 75-cent-per-pack increase on all tobacco products to help close deficits in the state budgets for the current and upcoming fiscal years.

The version of the bill that wins approval in the Republican-controlled House probably will be a mix of what was proposed by the House GOP and Democratic Gov. Jennifer Granholm, House Speaker Rick Johnson, R-LeRoy, said Tuesday.

House Republicans proposed last week increasing the tax only on cigarettes, leaving out other tobacco products such as chewing tobacco. But the caucus abandoned the proposal after it appeared not to have support from Granholm, who proposed increasing the tax on all tobacco products.

"It will be pretty much in the middle of the road," Johnson said in a telephone interview.

Greg Bird, spokesman for the state budget office, said members of Granholm's budget team continued to talk with House leaders about a compromise Tuesday afternoon.

Although House Republicans have a 63-46 majority in the 110-member chamber where there is one vacancy, many GOP representatives philosophically disagree with increasing any tax and say they will not vote for this one.

Meanwhile, a number of House Democrats say the increase unfairly affects low-income adults who might have a more difficult time quitting smoking and being able to afford smoking cessation aids.

House Minority Leader Dianne Byrum, D-Onondaga, said she is confident the votes will be there on Wednesday to approve the increase because there is not enough support among members of her caucus to resolve the shortfall through budget cuts.

"I don't think we're there yet, but I think we're close," she said Tuesday afternoon. "I do expect ... at end of the process, we will have the votes for the bill to leave the House."

Granholm spokeswoman Liz Boyd said the governor would be nearby at the time of the House's expected vote Wednesday.

Rep. Gretchen Whitmer of East Lansing, ranking Democrat on the House Appropriations Committee, said having Granholm close on Wednesday would provide added incentive for Democrats to approve the higher tax.

The tobacco tax increase originally was part of the governor's budget plan for the fiscal year that begins Oct. 1, but Granholm proposed moving up the effective date to July 1 to provide $97.1 million for the current fiscal year, which has a $250 million shortfall.

"She's very persuasive and is a very strong advocate for the things she believes in and this is a centerpiece of the budget," Whitmer said about Granholm.

Granholm was not in her office in the state Capitol building or in her office across the street when the House voted on the cigarette tax last week.


TOPICS: Business/Economy; News/Current Events; Politics/Elections; US: Michigan
KEYWORDS: cigarette; cigarettetaxes; pufflist; smoke; tax; taxes
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To: Dan from Michigan

It will have been seven years next month since I had my last smoke.

There have been at least a half dozen other times that I have 'quit for good' since I started smoking before the Surgeon General talked down to me by putting warnings on each pack. Any kid with half a brain knows that ingesting smoke of any kind into their lungs is not good for them. I did and I still miss lighting up. But, this time, I think I've kicked the habit for good.

That said, if I were still smoking, I think I would be growing and rolling my own.


21 posted on 05/26/2004 1:13:16 AM PDT by leadpenny
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To: leadpenny

What gets me cranked on this Tobacco Tax issue is that these legislators have already butchered and consumed the fat hog they got from the Tobacco Settlement - directly paid for by higher prices.

Now, they can tell us that "We All Know that XXX program must be continued or expanded." If it is true that "We All" know the importance of the current spending folly, get "We All" to pay for it. Instead of demonizing smokers who have paid far, far more than their share of taxes.


22 posted on 05/26/2004 2:21:24 AM PDT by aaCharley
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To: aaCharley
I think it will get much, much worse. Once they have killed the Golden Goose (tobacco as a tax vehicle), with only the very wealthy able to purchase cigarettes above the counter, the need for those taxes to support frivolous spending will still be there.
23 posted on 05/26/2004 2:33:24 AM PDT by leadpenny
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To: Dan from Michigan

A more honest proposal by the legeslature would be

1) Make cigarettes illegal.
2) Put a lifetime yearly tax on all former smokers of $1600.00 per year just because they used to smoke.
3) Life in prison for anyone having anything to do with
the inevitable black market that will spring up after this
new law passes.


MORONS!


24 posted on 05/26/2004 3:28:07 AM PDT by ExSafecracker (Why is there no Salvation Navy?)
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To: Dan from Michigan

This is a big reason I buy on line from a reservation in NY. Of course, the state thinks I quite and their behaviour modification was a success. Now they can't live without my money!


25 posted on 05/26/2004 5:41:11 AM PDT by CSM (Vote Kerry! Boil the Frog! Speed up the 2nd Revolution! (Be like Spain! At least they're honest))
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To: John Lenin

"How much is a pack of smokes in Michigan ?"

I spoke with a smoker yesterday that pays $3.68 a pack. That is at the low end of the cost, normally smokers tell me they pay $4-4.50 per pack and about $35-40 per carton (ten packs). I pay $16.95 a carton from out of state.


26 posted on 05/26/2004 5:43:32 AM PDT by CSM (Vote Kerry! Boil the Frog! Speed up the 2nd Revolution! (Be like Spain! At least they're honest))
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To: Graybeard58

I was required to take a long flight and I decided some nicorette gum might come in handy. When I made the purchase, the store acted like I was trying to snatch some gold at Ft. Knox. I went to the cashier and bought cigs very easily. I think they got the point.


27 posted on 05/26/2004 5:46:24 AM PDT by CSM (Vote Kerry! Boil the Frog! Speed up the 2nd Revolution! (Be like Spain! At least they're honest))
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To: leadpenny; Dan from Michigan
taxes to support frivolous spending will still be there.

Cutting spending, would never cross their minds. Raising taxes on cigarettes will not be enough. Ohio's Governor Taft raised taxes on numerous services, that were never taxed before, (haircuts,tanning etc).

28 posted on 05/26/2004 6:13:58 AM PDT by MissTargets
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To: MissTargets

Jenny from the bloc has discussed the same things, proposing a new services tax!


29 posted on 05/26/2004 6:24:50 AM PDT by CSM (Vote Kerry! Boil the Frog! Speed up the 2nd Revolution! (Be like Spain! At least they're honest))
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To: Dan from Michigan

My two reps voted against the tobbaco tax. If they vote for it they're toast and they know it. This will not pass.

Jennifer should build a "cool city" out of zebra mussells, launch it onto Lake Superior and float back to "cool" Canada.


30 posted on 05/26/2004 6:40:08 AM PDT by sergeantdave (Gen. Custer wore an Arrowsmith shirt to his last property owner convention.)
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To: sergeantdave
Sad to say, but I'm more worried about Johnson than Granholm.
31 posted on 05/26/2004 7:46:40 AM PDT by Dan from Michigan ("Today we did what we had to do. They counted on America being passive. They were wrong.” - Reagan)
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