House OKs cigarette-tax increase
By Robert Behre
South Carolina's House approved a 50-cent per pack cigarette tax increase Thursday, with plans to use the extra money to provide health insurance for low-income workers.
House members voted by a veto-proof 97-22 to raise the state's tobacco tax from 7 cents to 57 cents on a pack of cigarettes, which is expected to generate $147 million for health care.
The vote came after an hour of debate in which House members beat back several proposed amendments, some of which would have lowered the tax increase from 50 cents to 30 cents.
State Rep. Chip Limehouse, R-Charleston, said if anything, he would have supported a bigger jump.
Previous story
Smokers' tax hike ignites passion, published 04/02/09
"I would have liked to see a dollar (per pack increase)," he said, "but just on the heels of the federal hike, it was hard to get that."
Limehouse was referring to the new federal tobacco tax that took effect Wednesday, increasing that tax from 39 cents to $1.01 per pack, pushing the cost of most packs of smokes beyond the $4 mark.
The Legislature has debated raising the cigarette tax, the nation's
lowest — for a decade, but this year's bill drew broader support in the House because it directed the income more toward private-based health insurance rather than toward the state-run health system.
Of the $147 million in new income, about $139 million would create a fund to cover 75 percent of a health care policy for those making up to about $21,600 a year. The maximum credit would be $3,000.
Small businesses with 25 or fewer low-income workers would get a 67 percent credit on insurance premiums for each worker. That would have the same limit.
This version was backed by the House leadership, including Speaker Bobby Harrell, R-Charleston, who helped derail a different version last year following Gov. Mark Sanford's veto.
State Rep. Leon Stavrinakis, D-Charleston, said he is fine with the new version, which he expects to survive a near-certain veto from Sanford.
"We expanded the child health care coverage through the state last year. We haven't built up all that enrollment, so that indicated to me that maybe the need to do it through the public sector wasn't as great as we thought it might be," Stavrinakis said.
A routine third reading today will send it to the Senate, which also passed a version of the tax last year.
Forty-four states and the District of Columbia have raised their tobacco taxes since 2002, and even at 57 cents per pack, South Carolina's new levy would remain well below the $1.21 per pack national average.
"Today was really a great day for small business, a great day for health care," Limehouse said. "People are still going to buy them. ... It's a voluntary tax. Everybody came out a winner."
The Associated Press contributed to this story. Reach Robert Behre at 937-5771 or at rbehre@postandcourier.com.
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majorjohnson (anonymous) says...
I order my tobacco bulk now. I'm not giving these jerks a penny. I give it a couple of months before they raise the taxes of the people who supported this increase, and I'll be laughing at their crying when the tax man comes for them.
April 3, 2009 at 7:42 a.m. ( permalink | suggest removal )
Southern_Cousin (anonymous) says...
I am going to be ordering my tobacco products over the Internet from Europe, by the case. Hah - no taxes. Fluck you SC congressmen and senators, and fluck you federal government.
This is a regressive tax, as it is well documented that most smokers are "poor people". Luckily, some of us poor people aren't stupid, though. No doubt I wouldn't qualify for the very insurance our esteemed government officials would have me pay for through these taxes. I am barely bringing home enough bacon for me alone these days. I don't have a penny to spare for people who are stupid enough to take a job that doesn't offer health insurance. Period.
Didya turn me into a criminal ?
Pity life is becoming such a hassle, trying to live in these days and times makes me envy the dead.
April 3, 2009 at 8:10 a.m. ( permalink | suggest removal )
oldglory (anonymous) says...
Where do my personal rights begin? Where do they end?
I have heard so many discuss their rights to have guns of all types, to ride motorcyles without helmets, to not burden children with helmets on certain vehicles, to use cellphones while driving, and to have no vehicle inspections, including emissions. (Not to mention all the truly personal 'rights'--fried foods, desserts, etc.) Why should anyone want to continue taxing a product which people use in their own homes and vehicles? And before you holler 'pollution', do something about vehicle and factory emissions!
I am almost concluding that there are many, many holier-than-thou people who jump on the most popular band wagon to make a showing in order to divert attention from their particular 'vices' to save their vices from others who would control them and impose unfair taxes.
April 3, 2009 at 8:19 a.m. ( permalink | suggest removal )
zekemire (anonymous) says...
Absolutely ridiculous! Who gives a rat's butt what other states charge? TYPICAL SOCIALIST COMMIE GOVERNMENT B.S.!!!!
April 3, 2009 at 8:52 a.m. ( permalink | suggest removal )
SCdeacinNYC (anonymous) says...
Well this tax was a part of Sanford's brilliant plan to increase tax revenue in the state. It's estimated the tax will bring $150 million in tax revenue to the state.
http://www.charleston.net/news/2009/j...
If the state hadn't lost hundreds of millions of dollars because of stupid and short-sighted end to grocery sales tax (a tax that at least taxed EVERYONE instead of a few), there wouldn't be a need for a cigarette tax. Think about that.
April 3, 2009 at 9:10 a.m. ( permalink | suggest removal )
RTC (anonymous) says...
Chip Limehouse is such a jerk. The last time he was running for office he was standing outside the polls where I voted.
He yelled, "who'd ya vote for?" directed right at me.
I have been making a list of every politician that has p*ssed me off ever since.
If they think this tax is going to do any good for health care then they are delusional.
I'm waiting to see if my family members who are considered "low income" get any help from this tax. I don't believe it's going to happen.
April 3, 2009 at 9:16 a.m. ( permalink | suggest removal )
UrGatorbait (anonymous) says...
Smoking is not a right but I remember what part of duh country I'm in.
I ain't paying no taxes heros, you'll be the first to demand something for nothing. You guys are a joke.
April 3, 2009 at 9:19 a.m. ( permalink | suggest removal )
UrGatorbait (anonymous) says...
Appropo name for you fodder. Love the simplistic thinking. Kill, kill, think? Pay taxes? I want things but I don't wanna pay for anything. Viva la revolution. After you hero.
"I'll remember them at election time" yeah sure, the populist battle cry that quickly gets forgotten come election time when money gets passed around, I can't be bothered to go vote, and etc. etc.
Angry little people
April 3, 2009 at 9:36 a.m. ( permalink | suggest removal )
CHRISJIII (anonymous) says...
If you tink that this extra money will go to help out the disadvantaged you're crazy. Look at the state education lottery!!
April 3, 2009 at 9:47 a.m. ( permalink | suggest removal )
beefsaver (anonymous) says...
Two things stand out in this situation:
1. The programs off-set by this rise in taxes will benefit low-income families without adequate (or any) health insurance. Cigarettes are smoked by low-income people far more often than those of higher income, and of course the raw numbers of "poor" smokers vastly outstrips that of "rich" ones. The tax to support healthcare for the poor is paid for by, wait for it... the poor! Furthermore, since smoking degrades (in general) the health of both the user and children in the same home, the user is funding the repair job for the damage they create.
2. This tax program is set to raise $147M at $0.50/pack... 300 million packs of cigarettes to be sold! I notice that there is no time-frame cited, but that still is an amazing number of cigarettes.
Realistically, as the price of cigs rises, more smokers will quit. The correlation is clear and has been fairly proven as a reliable way to curb smoking. Smoking cessation isn't the goal of this program, but it will be a legacy of it.
April 3, 2009 at 9:48 a.m. ( permalink | suggest removal )
UrGatorbait (anonymous) says...
The low income are financing their own care, of course some one else is doing it for them because they choose to be poor, let others decide their fate, complain about it, and in the end are fine with being taxed to death. They are the same ones that play the lottery which is a tax for people that are bad with math.
April 3, 2009 at 12:24 p.m. ( permalink | suggest removal )
trinka7 (anonymous) says...
Can someone explain to me, if you raise cigarette prices, hoping to put this tax money to good use, what happens when everyone quits, the tobacco farmers go out of business, and all the tax money for health programs, suddenly disappears also. Then maybe big brother will turn to taxing alcohol, so no one will drink anymore, and people will have to turn to illegal drugs, which are currently not being taxed, am I right?
April 3, 2009 at 1:06 p.m. ( permalink | suggest removal )
wmp1948 (anonymous) says...
Everybody wants to keep raisng taxes on cigarettes.
I would like to know the real reason that people want to keep raising the taxes on cigarettes.
I know it's bad for your health and other people around you.
but smokings not the only thing out there that kills people.
Thank you for your time and help,
William M. Pierson
April 3, 2009 at 1:10 p.m. ( permalink | suggest removal )
gingerlatte (anonymous) says...
"Then maybe big brother will turn to taxing alcohol, so no one will drink anymore, and people will have to turn to illegal drugs, which are currently not being taxed, am I right?"
~~~
Maybe you would but some of us aren't that desperate to get a buzz.
The government is doing this because it's an addictive substance and they are exploiting those individuals with additive personalities. Of course there will be a lot of grumbling but most will fork over the extra cash. As for all the new "addicts", they won't even blink because they'll be used to paying the price.
~~~
"I know it's bad for your health and other people around you but smoking's not the only thing out there that kills people."
~~~
Yes, but you can't get second-hand cirrhosis of the liver because they guy next to you at the bar decided to get sloshed. Nor can you get second-hand clogged arteries from the guy stuffing a cheeseburger in his face.
April 3, 2009 at 1:42 p.m. ( permalink | suggest removal )
Clemsurf (anonymous) says...
If you don't like it then don't smoke. It only kills you anyways.
April 3, 2009 at 1:55 p.m. ( permalink | suggest removal )
SpongeMunkie (anonymous) says...
How about them funnelling some of that money into research for better/ more efficent ways to quit smoking. Drug addicts and alcoholics have programs and rehab available. Oh... but that would defeat the purpose, right? The government didn't raise the taxes because smoking is bad for you and they want people to have to give it up. They raised it because they know that most smokers can't or won't give it up.... and they will get their money. And, hey... gov... how about some help, some assistance for those of us non smoker's who have to live with a mood swinging grouch who is trying to quit. Maybe fund a retreat where we can go while they wean themselves. Ooooh... wouldn't it be nice if we could bring a class action lawsuit up for our pain and suffering? Yes, smoking kills you, but so does so many more things, and last time I checked there were laws in place to ensure that only adults get to choose how they want to help kill themselves. That's not enough. I guess. *sorry... ranting... am stuck with a smoker that gets really grouchy and snappish when he makes the effort to smoke less*
April 3, 2009 at 3 p.m. ( permalink | suggest removal )
geekboy (anonymous) says...
I don't smoke, never have, so I don't really care if they charge $10 a pack in taxes.
However, the problem with this entire plan is this:
-------------
"which is expected to generate $147 million for health care."
-------------
See, it NEVER works out that way. Too many people will quit smoking, or will buy over the internet, or will buy off the black market, and this honey pot of money they are counting on will not materialize.
April 3, 2009 at 5:09 p.m. ( permalink | suggest removal )
yird (anonymous) says...
Gee isn't this just great. Democracy at work.
This tax will do the same thing for children's health as the lottery did for education.
Everyone of the legislators who voted for this tax ought to be voted out of office. Their arrogance is only matched by that of the national impostor in chief.
"Today was really a great day for small business, a great day for health care," Limehouse said. "People are still going to buy them. ... It's a voluntary tax. Everybody came out a winner."
Oh yeah, the poor bloke who works with his hands and can't afford season tickets to the Charleston Symphony who enjoys relaxing after work with a beer and a smoke, screw him.
I order my cigars from out of state and pay no tax to these money grubbers so it won't affect me but I think their utter contempt for those that enjoy tobacco is disgusting.
Truth be known, half of them are probably snorting coke or even dealing in it. After all, if they get caught they won't be going to CCI so the risk is minimal.
A little community service (telling kids not to do what they did) after a short stretch in a rehabilitation facility then voted right back in office by a pathetic public that suffers from political amnesia.
April 3, 2009 at 5:38 p.m. ( permalink | suggest removal )
geekboy (anonymous) says...
yird banged away on his keyboard and typed thusly:
"I order my cigars from out of state and pay no tax to these money grubbers so it won't affect me but I think their utter contempt for those that enjoy tobacco is disgusting."
*******************************
Ah, but they're trying to fix that too, my friend.
http://www.eschoolnews.com/news/top-n...
April 3, 2009 at 6:02 p.m. ( permalink | suggest removal )
Chilldiesel83 (anonymous) says...
ginger, but you can be killed instantly when that sloshed guy gets on the road and heads on home. Statistically speaking, more people are killed by drunk drivers than cigarettes. Im guessing that 150 million will become the floor of the money needed from this program, not the ceiling, so if they are right and more people quit smoking, once revenues decline, the tax will need to be increased and so the cycle is invented. You will get to a point where everyone quits smoking and you will have to start taxing something like cheese lol. Hey atleast we will have either a lot of freed up land to build on or lots more corn and soybeans. Hey more corn equals more ethanol which means less global warming. I think I found a late night epiphany of some enviro guy in the corner! Go tell the people who are being flooded and trapped by ice in April that the world is drastically warming up. They might say something like then why the hell am i freezing my butt off surrounded by chunks of ice in my back yard.......
April 3, 2009 at 7:36 p.m. ( permalink | suggest removal )
yird (anonymous) says...
Global warming = more global farming.
Turn up the heat, so we all can eat.
April 3, 2009 at 8:46 p.m. ( permalink | suggest removal )
yird (anonymous) says...
geekboy, I reckon your right but I'll cross that bridge when I come to it. Maybe my $13.00 stipend from Uncle Sugar will make up for whatever tax they impose on my tobacco.
If not,so be it.
April 3, 2009 at 8:57 p.m. ( permalink | suggest removal )
northeastguy (anonymous) says...
You all will have to pay more to kill yourselfs now, sorry!
April 3, 2009 at 9:16 p.m. ( permalink | suggest removal )
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