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AUGUSTA - Majority Democrats on the Legislature's Appropriations Committee repealed a $250 million, budget-balancing loan Tuesday, replacing it with $125 million in spending cuts and a $1 hike in the state cigarette tax.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

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,

But I thought Partnership for a Tobacco Free Maine wanted a smoke free state?  If that were so, where would Baldacci and his ilk go to fill their coffers if there were no more smokers??

Can anyone answer me that?

What about the billions of tax dollars being fed into Maine by smokers via the Tobacco Settlement money?  How much blood money does this administration want to bled out of one group of people that live in this state??

Click here to find out just how much Maine smokers already contribute to the state.  What is fair is fair and this is totally unjust!

The Maine lawmakers talk out of both sides of their mouths and I for one am sick and tired of it!

 

[SheLion]

Well, they did it again! Screwed 25-30% of the Maine people who choose to smoke a legal product!!!

Well, here is one alternative:

Can't stand the high taxes?

Afraid to order off of the Internet?

Then start rolling your own!!!

I roll out a beautiful carton for a little under $8 dollars.  Premiums in my state are now up to $45-$50 a carton.  Can you imagine the money I have saved over the past 4 years since I now roll my own?  It's mind boggling.

under $50.00

$5.75 a bag

$1.99 for 200 filtered tubes

 
and

Smokers United

Roll Your Own Tobacco Store

Roll Your Own Magazine

[Tarpon]

Why not $40 a pack tax? They could fund the whole budget with this level of taxation on cigs. Give all the rest of the money back to the people.

I suggest we get those Navy bases out of this communist country.

[StoneColdTaxHater]

I don't live in Maine I live in "tobacco friendly" North Carolina but I agree whole heartedly. If tobacco were soooo deadly why isn't it banned? Answer...Tax revenue. The feds banned ephedra last year after 100 people died over 10 years by that standard we would be banning cars too. The hypocrisy is sickening.

[Gabz]

I think I'll keep my keyboard quiet and retain my posting privleges.................

[Fierce Allegiance]

The feds banned ephedra last year after 100 people died over 10 years by that standard we would be banning cars too.

By that standard we should be banning water.

[SheLion]

I suggest we get those Navy bases out of this communist country.

I hate to say this since I live in this God Forsaken state, but I think you are right.  Strip this damn state down to bare bones!

Let the Maine lawmakers pull the revenue out of their own butts for a change.

[Condor51]

"We have selected some new revenue to bring us to the $250 million target," said Sen. Peggy Rotundo, D-Lewiston.

Earth to Peggy - NO you haven't.

1. People will buy on-line from a certain Indian Reservation that will not release it's records.
   
2. Other's will just stop smoking.

   And I hope you're sitting down for this one Peggy.....

3. The state will see a DECREASE in tax revenue from cigarette sales.

Have a nice day you ijit dem.

[2banana]

The black market and organized crime thanks the Maine legislatures...

[NaughtiusMaximus]

The problem with socialism is that sooner or later you run out of other peoples' money to spend.

[SheLion]

I don't live in Maine I live in "tobacco friendly" North Carolina but I agree whole heartedly. If tobacco were soooo deadly why isn't it banned? Answer...Tax revenue. The feds banned ephedra last year after 100 people died over 10 years by that standard we would be banning cars too. The hypocrisy is sickening.

It IS sickening.  I am shaking so bad right now I can hardly type.  The hypocrites in Augusta make me want to throw up.

All Partnership for a Tobacco Free Maine scream they want everyone to quit.  If that were so, then how the hell would this state survive without smoker's tax dollars.  I am totally fed up.

Ban the damn stuff and be done with it.  Oh but wait!  The state would surely go down the toilet if that were the case!

[SheLion]

I think I'll keep my keyboard quiet and retain my posting privleges.................

Oh I'm shaking here Gabz.  I heard rumors in the wind about this, but this morning, there it is in black and white in the Bangor Daily News.  I sure don't know how much more Maine smokers can take.  I wish all of them would roll their own and go elsewhere for cigarettes and tell this state to pound sand.

[SheLion]

By that standard we should be banning water.

Oh hey! Let's tax water! Or is it already!! heh!

[Sunshine Sister]

I wish all smokers would do this. The various states would be howling if they did. What fun would that be to witness!

[SheLion]

1. The state will see a DECREASE in tax revenue from cigarette sales.

Have a nice day you ijit dem.

Well said!  The more they raise it, the less revenue they will see.  They already shot the goose that laid the golden egg.

Wonder how much these idiots are drinking now-a-days! I don't see them going after alcohol.  Hmmm wonder why that is!

[Fierce Allegiance]

NH has relatively low taxes on smokes, but it's a haul for you and me. Technically, in CT anyway, you still owe a "use" tax on stuff bought out of state.

I have to go get some fireworks in NH, so I will get smokes too.

[SheLion]

The black market and organized crime thanks the Maine legislatures...

Tell me about it!

We have called the Dems a lot of things in here, but I can't even post what I am calling them behind my monitor!

[yoe]

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.

Just try this with beer………

"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,"

Slipping Socialized Medicine under the door? Don't be fooled by the hackneyed "working poor".....

[Gabz]

The black market and organized crime thanks the Maine legislatures...

As do terrorists.

She Lion - you might want to search through Norm Kjono's columns at Forces - he has one entitled (I think) "Butts to Bullets" about how some of the black market in cigarettes, due to these outrageous tax hikes, is being managed by terrorists and funding the insurgents killing our troops in Iraq.

[SheLion]

I have to go get some fireworks in NH, so I will get smokes too.

I wish all the smokers in Maine would roll their own or go elsewhere and then let the Dem lawmakers look at each other. They want smoke free? Let's give them REVENUE FREE as well!