CIGARETTE TAX – Here’s 10% of your Budget Shortfall

Did you know:

• A new statewide poll of Texas Republican primary voters shows that 72.6% support a $1 user fee on each pack of cigarettes to help the Texas Legislature solve a $9.9 billion budget shortfall.

• In addition, 60.1% of those polled say they would be more likely to vote for a candidate for public office who supported a $1 tobacco user fee.

• Texans surveyed found a tobacco user fee far more acceptable than other options for raising additional state revenue, including an expansion of casino gambling (39.9%), a 2-cent increase in the state sales tax (36.5%), or a state personal income tax (14.1%).

• A cigarette tax is a user fee paid only by those who smoke.

• A $1 per pack increase in the cigarette user fee would generate $1.5 billion in new revenue during the next biennium. (Texas Comptroller of Public Accounts)

State Rep. John Edmonds (R-KS), Chairman of House Tax Committee:  Explaining why he reversed his opposition to all tax increases and introduced bills to increase the state sales tax, raise the cigarette tax from 24 cents per pack to $1 per pack, and increase other tobacco taxes from 10 percent to 40 percent,  “I asked constituents this weekend what tax they would like to see increased, if they had no choice They said the sales tax, because everyone pays that, and the cigarette tax, because the increase would prevent some young people from smoking.” (Lawrence JournalWorld, April 10,2002)