Maine: Fiscal sanity can start with cigarette tax hike (Again????)

The Portland Press Herald.com ^ | 5-12-05

[SheLion]

The can't-win politics of taxing and spending have led to some awful decisions in Augusta these last four months, not to mention plenty of partisan turmoil. Today, however, lawmakers can begin the process of bringing back fiscal sanity.

Squeezed by a voter referendum demanding more money for local schools, a pledge by the governor not to raise broad-based taxes and a desire to maintain core social programs, majority Democrats plan to borrow to pay the state's ongoing bills. About half of the $450 million in borrowing would go toward paying for things that should be covered in the regular budget.

The politics behind this fiscal flim-flam are easy to understand. There are vocal constituents ready to pounce on either tax hikes or cuts in spending. Borrowing offers a way out of that box.

It's bad policy, however, and it reflects poorly on both political parties, which could not come together on a bipartisan plan for a responsible budget.

Such a plan would almost certainly feature deeper cuts and additional taxes. Today, a reasonable approach to the tax side of that equation is getting a hearing.

Two bills to raise the tax on cigarettes are before lawmakers. One would raise the levy by $1.50 per pack. It would generate $80 million revenue. Another would hike the cigarette tax by $1.

Both bills seek to direct the money raised into health-related programs. While such programs are laudable, it's probably not practical for the state to raise as much as $80 million and then turn around and spend it when it is borrowing to meet its obligations.

A cigarette tax has a lot of merit. Higher prices for these carcinogens cause more people to quit, and, significantly, young smokers are especially sensitive to cigarette prices.

The Maine Coalition on Smoking or Health estimates that nearly 10,000 lives would be saved by a $1.50 hike in Maine's cigarette tax, owing to 33,000 fewer smokers.

Opponents of raising the cigarette tax cite the possibility that people will buy cigarettes out of state, but the data on past tax hikes for cigarettes do not support this contention. Also, Maine's current tax of $1 per pack is the second lowest levy in the Northeast.

No doubt, raising any tax is politically difficult. That's why doing so should have bipartisan support. Indeed, coupling a higher tax on cigarettes with deeper budget cuts to eliminate the need to borrow seems an obvious compromise.

It can start with a higher cigarette tax, something deserving of support on both sides of the aisle in Augusta.

[SheLion]

Click here to find out what Maine smokers are already contributing to the state economy and these jerks still want to bleed more money out of us! Maine Information

This tax increase will just drive more smokers to the internet, or by rolling their own.  This will just lose more money for the state.  I can't believe these idiots doesn't realize this.  They think that by raising the cigarette taxes, it will force smokers to quit.  Just what are THEY smoking to believe this?

And if all Maine smokers quit, just where would they get all of that tax revenue.  They must think we are all stupid out here.

Does anyone wonder where the billions from Maine cigarette tax dollars is being spent now? Is anyone at all asking that question? Someone should!

[SheLion]

Maine ping!

[pipecorp]

How about a tax on bald headed he-bitches that get slapped around by their bull-dyke wives while in state office?

[MS.BEHAVIN]

I wish we could impeach him!
He wouldn't know how to finance a lemonade stand..
Ms.B

[NewHampshireDuo]

In light of the cutbacks at Bath Iron Works and the possible closure of the Kittery shipyard, they'll just have to increase that tax some more.

[kingattax]

"I LOVE taxes !"

[Don Corleone]

Same song......next verse...

[jec41]

Just remember you're next!!! Soon as they get all they can from smokers the next health hazard will be soft drinks. $1.00 on a Pepsi.

[Arkie2]

Maybe we could trade Canada, Maine for BC. A win-win for everybody.

[An American Patriot]

"Trying to make a life in the BLUE state of Maine."

I "feel your pain." LOL

That said, if you think its bad in Maine, consider "our" plight as your neighbor, here in the Green Mountain State?

Got to be one of the top 10 most lib/dim/socialist state in our Great Republic.

None of New England is what it was like when I was growing up here in the 50's. Must be all those "Flat-landers?" LOL

As for me, read my tag: 14 days and a wakeup.

[Pessimist]

"One would raise the levy by $1.50 per pack. It would generate $80 million revenue"

No doubt the got the 80 mil figure by simply multiplying $1.50 by the number of packs of cigs usually sold per year.

So then, by that logic if they raised the tax by %1,500 per pack they could generate $80 Billion!

Gee... Wonder why nobody thought of that sooner? </sarcasm>

[Mears]

Oh my God,not the smokers again!

[Mears]

As a Massachusetts resident I'm jealous! It's too late for me but I'm glad you're getting out!

[patton]

We don't let people from new england settle here, unless they already have the required entry visa - a test on the constitution is required.

If you answer the questions on the war of northern aggression incorrectly, you will be immediately deported.

;)

[Madame Dufarge]

Opponents of raising the cigarette tax cite the possibility that people will buy cigarettes out of state, but the data on past tax hikes for cigarettes do not support this contention.

So why's the state threatening UPS and screaming about how much money it's "lost" to internet purchases of tobacco?

[SheLion]

So why's the state threatening UPS and screaming about how much money it's "lost" to internet purchases of tobacco?

Oh but I thought Partnership for a Tobacco Free Maine wants all of us to quit smoking! It's funny to see them talk out of both sides of their mouths, isn't it!

They want a tobacco free Maine but they want our tax dollars.  Gosh, how do they think they will manage that??!!

Remember this letter I received from HHS in 2003?

What a crock!  I guess she never heard about Judge Osteen's ruling on second hand smoke! heh!

[SheLion]

Oh my God,not the smokers again!

Oh yes!  How stupid do they think we are?  The Maine smoker's are already feeding billions into this state through our cigarette taxes.  And the lawmakers want more?  Boy, I tell you.........they sure are a greedy lot.

I wish to hell they would go after someone else for a change.  This is getting out of hand.  What makes me sick is most of the general non-smoking public think that the Tobacco Settlement money is being paid for by Big Tobacco or the government.  Wrong on both counts.  This money is being paid 100% by smokers who pay taxes on cigarettes.

And the glutton lawmakers want to bleed more money out of us.  Oh!  But didn't they say they wanted to do away with smoking? heh!  They sure can't have both, can they Mears?!

[SheLion]

So then, by that logic if they raised the tax by %1,500 per pack they could generate $80 Billion!

Does anyone know just how much Maine smoker's are contributing to the state economy now???  And they want to bleed more out of us???  It's unjust!

Maine Information

Maine Rights:
A public yahoo group for anyone who wants to talk about the Maine smoking ban situation.

Forces Maine
Check it out if you plan on vacationing in Maine and if you are a smoker.

Outside decks for smokers in northern Maine just won't cut it!
Bravo's Mexican Restaurant in Augusta is one outlet that built a patio specially to accommodate smokers.

Taverns brace for smoking ban in different ways.

 

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Tobacco Taxes Maine's excise tax per pack of cigarettes: $1.000 Maine's excise tax collection for the fiscal year ending June 2002: $95,006,000 Sales tax on tobacco products: 5.00% Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000 Click here for the Cigarette Tax and Payment Table for all states.

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Comparing Excise Taxes on Cigarettes, Beer and Wine

Number of six-packs of beer that must be sold in Maine to produce the same state excise tax revenue generated by one carton of cigarettes: 50.8

Number of bottles of wine that must be sold in Maine to produce the same state excise tax revenue generated by one carton of cigarettes: 84.1

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Master Settlement Agreement Payments To Date

 

$182,122,188 has been paid to Maine since the Master Settlement Agreement was signed on November 23, 1998.

 

[Madame Dufarge]

Ah yes, the "level playing field."

Funny how they never want to level it in favor of property rights.

[Mears]

I find it astonishing that most non-smokers know so little about the taxes smokers pay on cigarettes.

I remember explaining it to my non-smoking daughter when I was in Colorado and she was stunned. When I explained that the taxes were roughly doubling the purchase price and that we were actually paying a tax on a tax she was speechless.

She likes good wine and I asked her how she would like the price doubled. Needless to say she would not like it and she realized at that point how they are going after the "demon" smokers.

She even offered to ship me cigs from Colorado,where they were very cheap,but of course I refused since it would be illegal. The point is that my daughter,a non-smoker,was willing to do this when she saw what unfair taxes there are on Massachusetts smokers.

The politicians are so stupid it astonishes me !