So the House decided to increase the cigarette tax to about a third of the national average? Well, whoop-te-doo.
Of course, at least it’s something. And if you’re going to cut a tax with the money, the grocery tax is a far better choice than the income tax, because the former is actually comparatively high, while the latter is not. It also funds a youth smoking cessation program, so on the whole it’s pretty decent legislation, certainly better than doing nothing.
There was a lot of fuss made about lawmakers not using all the money for Medicaid or some such. This did not bother me. As I’ve said before, I don’t really care what happens with that money, you could burn it and still accomplish the most significant goal that has motivated me to want to raise it all these years: Study after study has shown that if you raise the price per pack, fewer kids become nicotine addicts.
Anyway, Medicaid costs — just like the costs of those of us who are in private health insurance plans — are climbing so fast that even if you had devoted all the money to that, it would only cover one year’s increase in the expense. Then what do you do? The answer to rising Medicaid costs is the same as the rising private health care costs: We need to overhaul the entire system, and that is one of those few things that might have to be done on the federal, not the state, level.
For details on exactly what happened on this vote, I share with you this memo that my colleague Cindi Scoppe prepared for me. Enjoy:
On Wednesday, the House voted 78-37 to increase the cigarette tax by 30 cents and reduce the sales tax on groceries by 1.6 cents. (H 3567) The tax increase is projected to bring in about the same amount of money as the tax decrease, around $100 million.
There were actually two major questions concerning the cigarette tax: whether to increase it and, if it was to be increased, what ELSE to put in the bill.
The Ways and Means Committee bill increased the cigarette tax by 30 cents, reduced the sales tax on groceries by 1.5 cents, expanded Medicaid coverage, funded a youth smoking prevention program and paid for a couple of other programs. It was designed this way in order to satisfy two separate constituencies in the House: those who would only vote for a tax increase if it was offset by an equal or larger tax decrease, and those who wanted money from a cigarette tax increase to go to Medicaid and other health initiatives. The problem was that this meant the bill would have actually cost the state about $100 million. To see the details of that package, go to the April 20 version of the bill and scroll down until you see the Fiscal Impact statement.
After initially sticking by this plan, the House eventually changed course and voted 64-52 to strip out nearly all of the spending and make the bill a straight swap: a higher cigarette tax for a lower sales tax on groceries. Here’s that vote, followed by the vote to pass the bill:
Voting to strip out the Medicaid spending:
Ballentine Bannister Barfield
Bedingfield Bingham Bowen
Brady Cato Chellis
Clemmons Cooper Crawford
Delleney Duncan Edge
Frye Gambrell Gullick
Hagood Haley Hamilton
Hardwick Harrell Harrison
Herbkersman Hinson Huggins
Kelly Kennedy Kirsh
Leach Littlejohn Loftis
Lowe Lucas Mahaffey
Merrill Mulvaney Perry
Pinson E. H. Pitts M. A. Pitts
Sandifer Scarborough Shoopman
Simrill Skelton D. C. Smith
G. R. Smith J. R. Smith W. D. Smith
Spires Stewart Talley
Taylor Thompson Toole
Umphlett Viers Walker
White Whitmire Witherspoon
YoungVoting to keep the Medicaid spending in the bill:
Agnew Alexander Allen
Anderson Anthony Bales
Battle Bowers Branham
Brantley Breeland G. Brown
R. Brown Ceips Clyburn
Cobb-Hunter Coleman Cotty
Dantzler Davenport Funderburk
Hart Harvin Hayes
Hiott Hodges Hosey
Howard Jefferson Jennings
Knight Limehouse Mack
McLeod Miller Mitchell
Moss J. H. Neal J. M. Neal
Neilson Ott Owens
Parks Rice Rutherford
Scott Sellers G. M. Smith
Stavrinakis Vick Weeks
Whipper—————————————-
The House passed the bill by a vote of 78-37:
Those who voted in the affirmative are:Agnew Allen Anderson
Anthony Bales Ballentine
Bannister Bingham Bowen
Bowers Brady Branham
Brantley Breeland Ceips
Chellis Clemmons Clyburn
Cobb-Hunter Coleman Cotty
Crawford Dantzler Delleney
Funderburk Gambrell Gullick
Hagood Hamilton Hardwick
Harrell Harrison Harvin
Herbkersman Hiott Hosey
Howard Huggins Jefferson
Jennings Kelly Knight
Limehouse Littlejohn Lucas
Mack Mahaffey McLeod
Merrill Miller Mitchell
Moss J. H. Neal J. M. Neal
Ott Owens Parks
Perry Pinson E. H. Pitts
M. A. Pitts Rice Rutherford
Sandifer Scarborough Simrill
Skelton D. C. Smith G. R. Smith
J. R. Smith Stavrinakis Stewart
Taylor Toole Vick
Walker Whipper WhitmireTotal–78
Those who voted in the negative are:
Alexander Barfield Battle
Bedingfield G. Brown R. Brown
Cato Cooper Davenport
Duncan Edge Frye
Haley Hart Hayes
Hinson Hodges Kennedy
Kirsh Leach Lowe
Mulvaney Neilson Scott
Sellers Shoopman G. M. Smith
W. D. Smith Spires Talley
Thompson Umphlett Viers
Weeks White Witherspoon
YoungTotal–37