Michigan House approves cigarette tax increase (55-53 - 13 Turncoat Republicans)

AP ^ | 5-26-04 | Amy F Bailey

[Dan from Michigan]

Michigan House approves cigarette tax increase
By AMY F. BAILEY
The Associated Press
5/26/2004, 6:50 p.m. ET

LANSING, Mich. (AP) — The Michigan House on Wednesday narrowly approved increasing the state tax on a pack of cigarettes from $1.25 to $2 as part of plan to balance the state budget.

If it becomes law, Michigan would have the second-highest cigarette tax in the nation only behind New Jersey's $2.05-per-pack tax.

Without debate, the House voted 55-53 to send the bill to the Senate, the minimum votes needed for approval of a bill in the 110-member chamber where there is one vacancy.

At a bar in downtown Lansing, Cheryl Rojas of St. Johns said the higher cigarette tax would unfairly burden just a portion of Michigan residents with the state's budget problems.

"Why the 'sin' taxes when they could go after a tax that affects everybody?" she said. "I don't think they are looking broadly enough."

The bill approved by the Republican-controlled House is significantly different from the version proposed by Democratic Gov. Jennifer Granholm.

The House-approved bill ends the higher tax on June 30, 2007 and leaves out other tobacco products such as chewing tobacco. It also sets aside 1 percent of new revenue generated by the higher tax for law enforcement efforts to crackdown on smuggled and counterfeit cigarettes.

The higher tax would take effect July 1, but the House approved an amendment giving vendors a two-week grace period before they must begin charging the higher rate.

The changes would reduce the amount of revenue the state expects to generate with the new tax by at least $43 million between the current and upcoming fiscal years.

An earlier version of the bill, which included all tobacco products and an effective date of July 1, would have brought in $99 million for the current budget year and $313.5 million for the one that starts Oct. 1.

This year's budget is $250 million in the red and the spending plan for the upcoming fiscal year is projected to be $1.3 billion short.

Thirteen Republicans voted for the bill with 42 Democrats. Forty-nine Republicans and four Democrats — Rich Brown of Bessemer, Jennifer Elkins of Lake, Joe Rivet of Bay City and Doug Spade of Adrian — voted against it. Republican John Pappageorge of Troy was absent and didn't vote.

House Minority Leader Dianne Byrum, D-Onondaga, said she was disappointed Republican House leaders stripped some revenue out of the bill.

"They're basically spending almost as much money as they're bringing in," she said. "That's pretty troublesome."

Granholm had similar concerns and plans to work with the Senate on changes, spokeswoman Liz Boyd said.

Republican House Speaker Rick Johnson of LeRoy argued that Democrats had a chance last week to vote for a bill that more closely resembled Granholm's proposal, but they didn't come up with enough votes. The House was 11 votes short of approving the higher tax last week.

Johnson said the state should repeal the 75-cent increase in three years.

"If we can put the right revenue plans in place so two or three years from now the economy turns around and revenues increase, we should be taking it back off the smokers who are out there," he said. "I don't think it is fair to continue to have a cigarette tax at that point."

The bill now goes to the Senate, which also is controlled by Republicans. It's unclear if the Senate will sign off on the version approved by the House or stick closer to Granholm's proposal.

Senate Majority Leader Ken Sikkema, R-Wyoming, said it's important to keep focus on the state's long-term budget problems.

"Solving a budget deficit is important, but taking action to build a future of economic prosperity is more important," he said in a news release.

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Roll call vote of cigarette tax increase

The Associated Press
5/26/2004, 6:04 p.m. ET

(AP) — The state House voted 55-53 on Wednesday to approve a bill that would increase the tax on a pack of cigarettes from $1.25 to $2. Thirteen Republicans voted for the bill with 42 Democrats. Forty-nine Republicans and four Democrats voted against it. Republican John Pappageorge of Troy was the only representative who didn't vote.

Name Prty Hometown Dist Vote

Frank Accavitti D Eastpointe 42 Y

Daniel Acciavatti R Chesterfield 32 N

Stephen Adamini D Marquette 109 Y

Fran Amos R Waterford 43 N

Glenn Anderson D Westland 18 Y

Steven Bieda D Warren 25 Y

Clark Bisbee R Jackson 64 N

Kenneth Bradstreet R Gaylord 105 N

Jack Brandenburg R Harrison Township 24 N

Rich Brown D Bessemer 110 N

Dianne Byrum D Onondaga 67 Y

Tom Casperson R Escanaba 108 N

Bruce Caswell R Hillsdale 58 N

Sandy Caul R Mt. Pleasant 99 N

Marsha Cheeks D Detroit 6 Y

Brenda Clack D Flint 34 Y

Paul Condino D Southfield 35 Y

Kenneth Daniels D Detroit 5 Y

Julie Dennis D Muskegon 92 Y

Craig DeRoche R Novi 38 N

Gene DeRossett R Manchester 55 N

Leon Drolet R Clinton Township 33 N

Stephen Ehardt R Lexington 83 N

Jennifer Elkins D Lake 97 N

Judy Emmons R Sheridan 70 N

David Farhat R Fruitport 91 N

Barbara Farrah D Southgate 13 Y

Edward Gaffney R Grosse Pointe 1 Y

John Garfield R Rochester 45 N

Paul Gieleghem D Clinton Township 31 Y

Matthew Gillard D Alpena 106 Y

John Gleason D Flushing 48 Y

Lauren Hager R Port Huron 81 Y

Artina Tinsley Hardman D Detroit 3 Y

Doug Hart R Rockford 73 Y

Morris Hood III D Detroit 11 Y

Jacob Hoogendyk Jr. R Portage 61 N

Hoon-Yung Hopgood D Taylor 22 Y

Jim Howell R St. Charles 94 N

Bill Huizenga R Zeeland 90 N

Scott Hummel R DeWitt 86 N

Joe Hune R Fowlerville 47 N

Tupac Hunter D Detroit 9 Y

Ruth Ann Jamnick D Ypsilanti 54 Y

Rick Johnson R LeRoy 102 Y

Ruth Johnson R Holly 46 N

Larry Julian R Lennon 85 Y

James Koetje R Grandville 74 N

Chris Kolb D Ann Arbor 53 Y

Jerry Kooiman R Grand Rapids 75 Y

Philip LaJoy R Canton 21 N

Charles LaSata R St. Joseph 79 N

Kathleen Law D Gibralter 23 Y

Alexander Lipsey D Kalamazoo 60 Y

Bill McConico D Detroit 6 Y

Andy Meisner D Ferndale 27 Y

Tom Meyer R Bad Axe 84 N

Mary Ann Middaugh R Paw Paw 80 N

Matthew Milosch R Lambertville 55 N

Jack Minore D Flint 49 Y

John Moolenaar R Midland 98 N

Mickey Mortimer R Horton 65 N

Michael Murphy D Lansing 69 Y

Gary Newell R Saranac 87 Y

Neal Nitz R Baroda 78 N

Mike Nofs R Marshall 62 N

William O'Neil D Allen Park 24 Y

Brian Palmer R Bruce Township 32 N

David Palsrok R Manistee 101 N

John Pappageorge R Troy 41 X

John Pastor R Livonia 19 N

Clarence Phillips D Pontiac 43 Y

Jim Plakas D Garden City 17 Y

Mike Pumford R Newaygo 100 Y

Triette Lipsey Reeves D Detroit 13 Y

Randy Richardville R Monroe 56 Y

Joseph Rivet D Bay City 97 N

David Robertson R Grand Blanc 51 N

Sal Rocca R Sterling Heights 30 N

Michael Sak D Grand Rapids 76 Y

Scott Shackleton R Sault Ste. Marie 107 Y

Rick Shaffer R Three Rivers 59 N

Fulton Sheen R Plainwell 88 N

Dale Sheltrown D West Branch 103 Y

Marc Shulman R West Bloomfield 39 Y

Virgil Smith D Detroit 7 Y

Doug Spade D Adrian 57 N

John Stahl R North Branch 82 N

John Stakoe R Highland 44 N

Alma Stallworth D Detroit 8 Y

Glenn Steil Jr. R Cascade 72 N

John Stewart R Plymouth 20 N

Susan Tabor R Lansing 71 Y

Shelley Goodman Taub R Bloomfield Hills 40 N

Steve Tobocman D Detroit 12 Y

Aldo Vagnozzi D Farmington Hills 37 Y

Barb Vander Veen R Allendale 89 N

William Van Regenmorter R Hudsonville 74 N

Joanne Voorhees R Grandville 77 N

Howard Walker R Traverse City 104 Y

Chris Ward R Brighton 66 N

Mary Waters D Detroit 4 Y

Lorence Wenke R Richland 63 N

Gretchen Whitmer D East Lansing 70 Y

Carl Williams D Saginaw 95 Y

Lisa Wojno D Warren 28 Y

David Woodward D Royal Oak 34 Y

Gary Woronchak R Dearborn 15 N

Paula Zelenko D Burton 9 Y

[Dan from Michigan]

Kudo's to Joe Hune and Chris Ward, but it wasn't enough.

[Dan from Michigan]

Damn.

[Graybeard58]

http://www.taxadmin.org/fta/rate/cigarett.html

[ClintonBeGone]

Kudo's to Joe Hune and Chris Ward, but it wasn't enough.

Dan, it's one thing to vote against these injustices. What makes a good legislator is one who also speaks out against the forces who propose such injustices.

[ClintonBeGone]

What a pathetic group of people. Johnson is a silly bumbling country clown. Next stop for this bill is Senator Sikkema. He's certainly going to make sure the bill reflects what the governor wants - he seems to be the one who carries her skirt on things like this.

[sausageseller]

More money for Indiana. Come on down and do you cig shopping here!

[sergeantdave]

Well, my rep. voted no. We clearly have too many RINOs in the party. They need to be challenged and thrown out in the '06 primaries.

[Dan from Michigan]

A lot of the ones who caved are term limited.