Nanny-staters now pushing yet another increase in Cigarette Taxes to relieve State Budgets

Partisan lines are clearly drawn: Democrats in favor, Republicans opposed

From Eric Dondero:

As state budget woes increase during the deep recession, and state worker lay-offs loom, legislators are looking to a familiar "bad guy," to pound even harder in an effort to help balance budgets. Democrat legislators are proposing massive increases in tobacco taxes. While Republicans, somewhat oddly, have been thrust in the role of defending the "little guy."

From Fox News, "States' Budget Woes Ignites Debate Over Raising Tobacco Taxes," Feb. 21:

Just a year after smokers were slapped with the single largest federal tobacco tax increase ever, public health advocates are urging states to follow up with their own cigarette tax hikes to offset declining revenues lost in the recession and to press more people into giving up smoking.

critics say a cigarette tax increase would be "foolish" and that the taxes are now "way too high" and target the poor.

"When you raise it a buck, you're taking it out of the hands of people with not much disposable income, and $1 buck a day is significant income," said William Ahern, the director of policy and communications for the Tax Foundation.

He added that since smokers can avoid tax by buying cigarettes on the black market, the increase is "criminalizing the population."

"Cigarettes are being sold on street corners like illegal drugs," he said. "There's a lot of crime associated with this now."

Republicans defending the rights of the Working Class

At least four states are already moving fast to implement an increase: New York, New Mexico Oregon and Maine.

Here's an example from one state.

From the Bangor Daily News, Feb. 21:

Public health advocates and some Maine lawmakers are supporting a proposed $1 state tax increase on a pack of cigarettes... But the proposed tax, estimated to generate about $26.6 million annually, faces opposition from Republican legislators...

Emily Cain, D-Orono, House chairman of the Legislature’s Appropriations and Financial Affairs Committee, said the tax proposal has been presented to her committee “along a partisan divide,” with support from Democrats and opposition from Republicans.

Sen. Peter Mills, R-Cornville, said the proposed tax wouldn’t generate enough money to meaningfully offset the devastating cuts the Legislature is charged with making. Mills, who is running for governor, predicted that legislative Democrats will push through not only the tobacco tax but also other liberal initiatives

In fairness, it should be noted that Republicans legislators are being joined in opposition to the tax increase, surprisingly, by outgoing Democrat Governor John Baldacci.

The libertarian-leaning group Freedom Works, headed by former Republican Congressman Dick Armey released a statement on the proposed nationwide tax hikes:

Those who don’t smoke won’t be paying this tax directly. Instead, this tax will fall disproportionately on the poor leaving less money for food and other essentials at a time when so many are hurting. At the same time, cigarette taxes hurt small businesses as profits from cigarette sales are lost across state lines, over the internet, or the black market. This means lost jobs, more economic pain, increased crime, and soon the state will be looking for the next group to tax to make ends meet. The collective bad fiscal policy of a state can’t be pawned off onto one unpopular minority.

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