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
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.
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