US: Tobacco Tax Rise to $1.41 A Pack Dies

Source from:  Monroe (LA) News-Star  04/24/2013

Apparent opposition Monday to increasing cigarette taxes to $1.41 a pack led Bogalusa Rep. Harold Ritchie to shelve his proposed tax increase but the issue is not dead.

Rep. Katrina Jackson, D-Monroe, said she will push her bills seeking an increase to 68 cents a pack and a constitutional amendment dedicating the revenues to health care.

Ritchie said that although he didn't poll members of the House Ways and Means Committee, he got a strong feeling that it would kill his proposal hiking the tax on a pack of cigarettes and other tobacco products, so he withdrew it from consideration.

Asked why he pulled the bill after more than an hour of testimony and questions, Ritchie said, "I'm a good vote counter," meaning he didn't have enough votes in committee. He told the committee "25 percent of us smoke. Probably 100 percent of you don't smoke."

Afterward, Ritchie said, "I'd have to have a train wreck to get my bill out of committee, especially at $1.05" increase.

Asked if Gov. Bobby Jindal's vow to veto any bill that raises taxes affected the committee's stance, Ritchie said, "I don't know if they're worried about a veto as much as the lobbyists have done a good job."

His proposal would have added $1.05 cents a pack to the 36 cents now assessed and tripled the tax other tobacco products.

Proponents of the bill said it would lead to lower tobacco consumption among adults and the higher cost would prevent young people from starting smoking.

Tonia Moore, associate director of Tobacco Free Louisiana, said one reason the state has a high smoking rate is "because we have cheap cigarettes," compared to other states.

Louisiana has the second lowest tax on cigarettes, behind Virginia with 30 cents. The national average is $1.48 and the average among tobacco-producing states is 48 cents per pack.

"Use of tobacco is the No. 1 cause of death, 3,500 people die every day," said Ritchie, who is a smoker. He said he's cut down to a pack a day.

"Smoking rates are higher in Louisiana," he said. "Twenty-five percent of high school students smoke and 25 percent of adults smoke." Smoking leads to the state spending $633 million a year treating uninsured and underinsured patients who have smoking-related diseases.

Opponents, primarily convenience store operators, testified it would adversely impact their businesses and possibly lead to employee layoffs and store closings.

Jack Casanova of Crowley, president of the Louisiana Association of Wholesalers, said such an increase would create a "black market" for cigarettes and Louisiana residents would go out of state to purchase cigarettes.

Debbie Major, representing Smoke and Go stores owned by former state Sen. Fred Hoyt of Abbeville, argued that Ritchie's bill "hurts small business" and "would not reduce underage smoking."

Reps. Kirk Talbot, R-River Ridge, and Jackson also deferred their cigarette tax bills until a later date.

Jackson's bills are supported by the Legislative Black Caucus and House Democrats. She said it's designed help the state secure sufficient federal funds to operate public hospitals and help other doctors and hospitals that treat uninsured and underinsured patients who rely on Medicaid.

Andrew Muhl of the American Cancer Society's Cancer Action Network, supported Ritchie's bill but said he could not support Jackson's because such an increase "would have little or no health benefit raising an insignificant amount that tobacco companies can absorb into their profit margin."

Ritchie said companies could cover an increase to 68 cents with discounts and smokers might never see any price difference. Enditem