Maine: Panel OKs $1 tax hike on cigarettes

bangordailynews.com ^ | 6-15-05

[SheLion]

Dems propose $125M in cuts

AUGUSTA - Majority Democrats on the Legislature's Appropriations Committee repealed a $250 million, budget-balancing loan Tuesday, replacing it with $125 million in spending cuts and a $1 hike in the state cigarette tax.

At $2 per pack in taxes, Maine would have the third highest cigarette tax in the country, according to Dan Riley, an Augusta-based lobbyist for the tobacco industry. The increase would effectively drive up the over-the-counter price for a pack of premium cigarettes like Marlboro from $4.19 to $5.19.

"We have selected some new revenue to bring us to the $250 million target," said Sen. Peggy Rotundo, D-Lewiston and co-chairman of the Appropriations Committee. "We cut as far as we felt we could."

Gov. John E. Baldacci said Tuesday he will support the cigarette tax increase as the best available solution to eliminating the $250 million state revenue bond included in the two-year, $5.7 billion state budget to take effect July 1. Like the 8-5 vote on the budget panel Tuesday, the state budget was advanced in March by majority Democrats who believed the $250 million loan was an acceptable alternative to deep spending cuts in state programs.

The proposal now goes to the printer, where it will be assigned an LD number. Legislative leaders essentially abandoned a planned Wednesday adjournment and anticipated debate on the new tax-and-spending package would begin sometime Thursday in the House.

Republicans on the panel have prepared their own proposal to reach the $250 million target that relies on severe cuts to state health care services and defers salary increases to state employees. The package also restores numerous proposals that were rejected by Democrats on the Appropriations Committee.

"A lot of our initiatives are about the size of state government and the costs associated with state employees," said Sen. Richard Nass, R-Acton and the senior Republican on the budget panel.

Republicans were essentially bypassed by Democrats in March when the majority budget was passed. The GOP responded by launching a people's veto of the borrowing component with the hope of overturning the provision at the ballot box in November. About 40,000 of the required 51,000 signatures have been gathered, according to Sen. Peter Mills, R-Skowhegan. In response to Tuesday's vote by the Appropriations Committee, Mills indicated final approval by the Legislature of either proposal to eliminate the borrowing provision of the budget was all that was needed to terminate the people's veto effort.

"When it looks like this has passed in the House and Senate, we'll declare victory and the signature-gathering effort will stop," Mills said.

In a closely divided House and Senate, however, such conclusions cannot be presumed lightly. Republicans and some Democrats were not sure how the majority report from Appropriations would be received by rank-and-file Democrats in the House. The Democratic plan:

. Cuts $10.4 million from mental health programs by revamping the delivery of those services.

. Saves $5.9 million by delaying school construction projects by one year.

. Cuts $2.2 million from the DirgoHealth program.

. Cuts $5.5 million from the Veterans Tax Reimbursement program.

. Cuts about $7.2 million from the Business Equipment Tax Reimbursement program.

By contrast, the GOP plan:

. Delays $20 million in state employee salary increases until the next budget cycle.

. Cuts $20 million in health care services to poor working Mainers.

. Transfers $32 million from the DirigoHealth program to the General Fund, leaving DirigoHealth with a balance of about $6 million.

. Eliminates the governor's Office of Health Policy and Finance with a $2 million deappropriation.

. Eliminates the reduction to the BETR program proposed by Democrats.

Rotundo said Democrats could not support the level of cuts Republicans wanted to make to the state's social service programs.

"In order to cut more we were going to have to get into those programs that provide health insurance for some of the poorest people in the state - the working poor," she said. "We just didn't want to go there. We did not want to remove thousands of people from programs that were providing them with some kind of health care."

[SheLion]

I've done searches and can't seem to find anything on that at this moment.

[Just A Nobody]

People will buy on-line from a certain Indian Reservation that will not release it's records.

If it's the same one I use, they have a great phone system as well. No on-line records "ordered" by the tyrannical judges.

[SheLion]

If it's the same one I use, they have a great phone system as well. No on-line records "ordered" by the tyrannical judges.

I think the state of Maine put a colbash on our Reservations as well. I don't hear where anyone can still buy cigarettes from a Maine Reservation. If they are, it's hush-hush.

Maine is trying to shut down the sells of cigarettes from Reservations as well.

If anyone knows about this, please let me know.

[Phantom Lord]

StoneCold,

NC is becoming less and less tobacco friendly.

[dts32041]

Come on the watermelon's don't want anybody in maine, but themselves.

[SheLion]

Come on the watermelon's don't want anybody in maine, but themselves.

Once they bleed dry the "little people," where will they get their coffers filled then?  Ted Kennedy? heh!

Come on the watermelon's don't want anybody in maine, but themselves.

Once they bleed dry the "little people," where will they get their coffers filled then?  Ted Kennedy? heh!

[SheLion]

I will tell you another thing: I am sick and tired of Partnership for a Tobacco Free Maine putting these retards on their TV advertisements!

I wonder how much these retards are being paid from the taxes smoker's are paying on cigarettes?!

[The Great RJ]

Maine legislators need a course in basic economics. If the price of a good increases the market responds by buying less of that good or seeking cheaper substitutes.

Maine smokers might actually quit smoking or at least cut down the number of cigarettes they smoke or more likely will buy their cigarettes from cheaper sources such as from the Internet, in Indian reservation smoke shops or from bootleggers. This increase in tax will likely decrease the revenue raised and create a need for expensive tax enforcement.

The old story of the goose that laid the golden egg is very applicable here.

[Mears]

Oh my God----here come the bootleggers!

[SheLion]

Maine legislators need a course in basic economics. If the price of a good increases the market responds by buying less of that good or seeking cheaper substitutes.

It's the American Way to shop cheap.  And by raising taxes through the roof on one legal item is their way of keeping their coffers full is not the way to go about this.  They did indeed kill the goose that laid the golden egg.  

Maine smokers might actually quit smoking or at least cut down the number of cigarettes they smoke or more likely will buy their cigarettes from cheaper sources such as from the Internet, in Indian reservation smoke shops or from bootleggers. This increase in tax will likely decrease the revenue raised and create a need for expensive tax enforcement.

Adult smokers, such as myself, will not quit.  We know the risks, such as over eating is also a killer, and we make our choices.  It should not be left up to any state to monitor our legal activities.  But to continually punish 25-30% of Maine constituents just because we choose to purchase a legal product is insane and way over the top.

The old story of the goose that laid the golden egg is very applicable here.

Maine legislators need a course in basic economics. If the price of a good increases the market responds by buying less of that good or seeking cheaper substitutes.

It's the American Way to shop cheap.  And by raising taxes through the roof on one legal item is their way of keeping their coffers full is not the way to go about this.  They did indeed kill the goose that laid the golden egg.  

Maine smokers might actually quit smoking or at least cut down the number of cigarettes they smoke or more likely will buy their cigarettes from cheaper sources such as from the Internet, in Indian reservation smoke shops or from bootleggers. This increase in tax will likely decrease the revenue raised and create a need for expensive tax enforcement.

Adult smokers, such as myself, will not quit.  We know the risks, such as over eating is also a killer, and we make our choices.  It should not be left up to any state to monitor our legal activities.  But to continually punish 25-30% of Maine constituents just because we choose to purchase a legal product is insane and way over the top.

The old story of the goose that laid the golden egg is very applicable here.

[SheLion]

Oh my God----here come the bootleggers!

If the bootleggers charge just HALF of what the state is getting in cigarette taxes, they will indeed be billionaires in a short amount of time.

[SheLion]

The increase would effectively drive up the over-the-counter price for a pack of premium cigarettes like Marlboro from $4.19 to $5.19.

This is wrong.  Back in 2001 when Maine raised the cigarette taxes I had to pay $45-$50 for a carton of More Menthol cigarettes.   Now, with this additional tax of $1.00 on one pack, that is $10 more dollars for taxes on one carton.

That would put More's or Premiums at $55 to $60 dollars for a carton which holds 10 packs. 

[Mears]

There was a show on the History Channel last week about the moonshiners and they made fortunes AFTER prohibition because of the high taxes the government put on alcohol .

Don't these morons ever learn?

[lowbuck]

Correct you are. . . I wonder how long it will take for some Maniacs (I lived there so don't bust my chops) to head South with a U-haul to buy low and sell low and make a fortune?

They pulled the same stunt here in Germany and sure enough the people worked around the system. Strangely the economic minister was moaning earlier this year about the loss of revenue. Poor lambs.

[SheLion]

Don't these morons ever learn?

I guess not. 

I received the following in email this morning.  Read it and weep......It's called "Mouse Trap."

I received this from a friend who is not involved in any smokers' rights group but she has always been very alert as to what's going on in this country and she's not thrilled.    

A mouse looked through the crack in the wall to see the farmer and his wife open a package. "What food might this contain?" He was devastated to discover it was a mousetrap. Retreating to the farmyard, the mouse proclaimed the warning. "There is a mousetrap in the house! There is amousetrap in the house!" The chicken clucked and scratched, raised her head and said, "Mr. Mouse, I can tell this is a grave concern to you, but it is of no consequence to me. I cannot be bothered by it."

The mouse turned to the pig and told him, "There is a mousetrap in the house."  The pig sympathized, but said, "I am so very sorry, Mr. Mouse, but 
there is nothing I can do about it but pray. Be assured you are in my prayers."

The mouse turned to the cow. She  said, "Wow, Mr. Mouse. I'm sorry for you, but it's no  skin off my nose." So, the mouse  returned to the house, head
down and dejected, to  face the farmer's mousetrap alone.

That very night a sound was heard throughout the house -- like the sound of a mousetrap catching its prey.  The farmer's wife rushed to see what was
caught. In the darkness, she did not see it was a venomous snake whose tail the  trap had caught.  The snake bit  the farmer's wife. The farmer rushed
her to the  hospital, and she returned home with a fever. 

Everyone knows you treat a fever with fresh chicken soup, so the farmer took his hatchet to the farmyard for the soup's main ingredient.

But his wife's  sickness continued, so friends and neighbors came to sit with her around the clock. To feed them, the farmer butchered  the pig.

The  farmer's wife did not get well; she died. So many  people came for her funeral, the farmer had the cow slaughtered to  provide enough meat for all
of them.


So, the next time you hear someone is facing a problem and think it doesn't concern you, remember -- when one of us is threatened, we are all at risk.

[JZelle]

http://www.smokinfree.com/?cigs4free

[CSM]

http://www.maine.gov/portal/facts_history/facts.html
Facts About Maine
Fast Facts
Population of Maine in 2000: 1,274,923

With a $5,700,000,000 budget, that comes to about $4,470.86 per resident. They would be better off just sending checks to every resident for $4,000.

But wait, then they wouldn't be able to employ all the useless folks in good government jobs.

[1Old Pro]

good one

[Gabz]

Very good.............but there are many who will not heed the moral of the story........and many of them reside right here at FR.

[SheLion]

TO ALL CUSTOMERS:
Credit Cards charges are no longer available for tobacco purchases.

Please choose one of the following  payment options: 

ECHECK or Money Order only.

Isn't  that something!  If I couldn't use my credit card for a legal purchase anymore, what good is having said credit card?  How ridiculous is this? Place your order  by Better to be safe then sorry though.