Cigarette Tax Hike a Win Win for NM

    The Albuquerque Journal today published an op ed I wrote about Senate Bill 30, and the day before they published a summary of the results of my constituent survey,which indicated that 86% of the now-800 respondents (out of 4,500 surveys sent to frequent voters in District 13)  favor a cigarette tax hike.  Tax increases are usually a last resort-- and I'm really not the tax lady.  But the alternative is continued cuts in education and health care that have already hit working families hard.  That doesn't seem fair when there is an alternative that will help pay for our health care costs, discourage smoking, and generate $33 million towards our revenue shortfall.

     Here' s a link http://www.abqjournal.com/opinion/guest_columns/30212540opinion01-30-10.htm and a version of the article: 

    No Butts, Tax Hike a Win-Win

 

By Sen. Dede Feldman

Democrat, Albuquerque

          All of the proposals to solve New Mexico's budget crisis will involve difficult choices. But one proposal is actually a win-win-win for our state — raising the cigarette tax by one dollar per pack.

        Win One: A dollar-a-pack tax will generate more than $33 million per year in badly needed tax revenue to help fund important programs from public safety to higher education.

        This revenue source will continue year after year and allow us to avoid cuts in critical basic state services.

        Win Two: Increasing cigarette taxes will reduce the number of children and teens who smoke. According to the U.S. surgeon general, making cigarettes more expensive is the most effective deterrent to young people starting to smoke.

        When cigarettes are more expensive, fewer kids will choose to take up the noxious habit because of their limited disposable income. Studies show that a 10 percent increase in cigarette tax slashes teen smoking rates by about seven percent.

        State programs to discourage youth smoking have yielded some results in the past few years, but now tobacco settlement funds used for this purpose may be diverted to fill the budget gap. An increased price will serve the same purpose, and in fact, there is no more effective method of curtailing teen smoking.

        Win Three: Increasing cigarette taxes will save the state millions in Medicaid expenses.

        For each pack of cigarettes sold here, New Mexico Medicaid spends $2.78 for treatment of tobacco related illnesses among our state's poor and working people.

        In New Mexico, a staggering 100 million packs of cigarettes are sold in a single year. Even a small reduction in smoking rates will pay enormous dividends in reduced Medicaid spending.

        Many of the arguments against the tax are simply based in fallacy.

        Cigarette taxes do not hurt businesses. In states where cigarette taxes have been increased, there has been no appreciable reduction in retail sales. Money not spent on cigarettes is simply shifted to other consumer goods.

        Cigarette taxes are not unfair to the poor. In fact, the poor are the most likely to be stricken by smoking-related illnesses like cancer and emphysema.

        The poor are statistically the most likely to quit smoking when taxes go up.

        Better yet, the tax is completely avoidable, unlike income taxes. Smokers can take advantage of the numerous smoking cessation programs funded by the state and nonprofit groups. They can save their health and save a dollar a pack at the same time.

        A huge majority of voters support increased cigarette taxes, especially when compared to more broad based taxes like taxes on food and merchandise.

        A poll completed last January by Research and Polling of 500 registered voters from around the state shows that 76 percent of respondents support a dollar-a-pack increase in cigarette taxes. Fifty-seven percent of those who identified themselves as smokers support the tax increase. I cannot imagine any other revenue enhancer or budget cut that would enjoy such widespread support among the public.

        It is rare in government that we have an opportunity for a win-win-win. I urge my colleagues in the Legislature and the governor to join with the American Cancer Society, the Heart and Lung Association as well as an array of other community groups to support Senate Bill 30, the dollar-a-pack cigarette tax to help balance our budget.

       

Comments

[Reeta Filatov]

I can say that was a good idea.Most of the people now will sure avoid on buying cigarette.In Finland country many of people already quite in smoking but most of them are still smoking using e-cigarette which for me is really nice however they say it is still an harmful cigarette even they say is not.

[Kenny Ray]

More tax on the smoker? Survey said we want to pay more. I dont believe it.
Why should cigarette tax pay for schools.
Let the parents pay. Anchor kids should pay double.
1 Woman 2 anchor kids, they get more from welfare, than I do working.
Go after the welfare raiders. Make them pay taxes. Why should i support someone, who is too lazy to work.
OH, thats right let the state pay them, and make me pay for it.

[jmb27]

Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.

Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."

The Center for Responsible Lending says YSP "steals equity from struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

[Steve Winters]

Well they have to take a direction so i guess we got the anwser

[Vapor King]

How much higher will they continue to tax cigarettes. I feel like people will pay any amount of money for them.

[suz]

This is the correct direction for solving NM budget problems NOT hurting working families already crushed by the recession and jeopardizing New Mexico's future by cutting education and critical state programs. This should be a no brainer and there are many as yet untapped sources of revenue left.