Mar 10 2010
Like a Bad Penny The Cigarette Tax is Back
Like I said last year and the year before they are never going to let this go. From yesterday’s Post and Courier article, let’s start with the logical fallacies of one Dr. Charles Darby.
“The higher the taxes, the more lives that we can save. It’s time for South Carolina to do what is right for our state,” said Dr. Charles P. Darby Jr., Medical University of South Carolina professor emeritus of pediatrics and executive director of the Children’s Hospital Center for Child Advocacy.
“Those of us who do not smoke pay higher health insurance premiums and taxes to subsidize the habit of smoking,” he said. “It is time the smoker pays for some of the cost.”
So according to the good doctor the only way to possibly solve this problem is to hand over more money to the government. There would seem to me to be a much more logical solution. Why don’t the insurance companies simply raise their premiums on people who smoke? What, is that just too easy? Or is the problem if we go that route our elected officials can’t get their grubby little paws on the money and then redirect it to all of their own little pet projects so they can buy votes at election time?
“Every delay just allows more children to get hooked on cigarettes,” Darby said.
According to what data, Doc? You think a thirty cent price increase on a pack of cigarettes is going to stop kids from smoking? It’s a negligible amount. I am a former smoker myself. I started smoking in high school back in the early 1990s when Marlboros were a buck a pack. When I eventually quite smoking in my 20s the price of Marlboros was approaching $5 a pack. It wasn’t the price that got me to quit. I just decided to start being more cautious of my health.
Now I am going to shock you. Unlike in years past, I am not as vehemently opposed to this tax hike this time. Here is why.
Rep. Chip Limehouse, a Charleston Republican and a ranking member of the House Ways and Means Committee, made the proposal to get the 30-cent increase in the budget. He said a cigarette tax increase is about the only tax increase he could support and that it’s more important than ever to pass it now. New cash for Medicaid will free up money for schools, law enforcement and other priorities.
If they give so much as a dime of this increase to the schools I am going to be thoroughly pissed. They don’t need any more money, but other state departments do. As one example, our jails in particular have been the recipients of excessively painful budget cuts and that effects the safety of every resident in South Carolina. The state budget has been stripped by more than $2 billion over what it was two years ago, so the efforts have definitely been made to try and reel in spending.
There is also this.
The governor said again in his State of the State address in January that he wants a cigarette tax increase to be used to cut corporate income taxes to make the state more competitive.
“We’re very much of the same mind as we’ve been in years past — that being that we’d definitely be open to an increase in the cigarette tax if it was accompanied by a corresponding tax cut in some other area. In fact, we’ve proposed just such an action in years past,” Ben Fox, communications director for Sanford, said in an e-mail Monday.
The House on Thursday gave key approval to a plan that eliminates the corporate income tax, as a way to make the state more attractive to business, making a cigarette tax increase this year even more likely.
That is a plan I can support. If the state were to inversely eliminate the corporate income tax in exchange for an increase in the cigarette tax then that is something I can probably roll with. Unemployment in South Carolina just hit 12.6% and we need a more competitive business environment. Eliminating the corporate income tax would definitely put us on that path.









