Posted on 04/14/2013 7:11:20 PM PDT by SeekAndFind
President Obamas new budget proposes paying for a $66 billion universal pre-kindergarten program by increasing the federal cigarette tax to $1.95 a pack. In theory, that raises about $78 billion over the next decade. Enough to fund the programbut not forever. The problem, as with all government programs funded under the kill-two-birds theory used to justify relying on smoking taxes as a revenue mechanism, is that cigarette taxes tend to discourage people from smoking. And with fewer people smoking, theres less revenue to be raised from cigarette taxes.
As The Washington Posts Brad Plumer points out you can see the expected decline within the presidents budget projections: Revenue peaks at $9.8 billion in 2015. But by 2023, the end of the 10-year budget window, its already down to $6 billionand presumably would continue dropping from there, making it plainly unsustainable.
And thats assuming that these revenue projections are accurate. States that have raised smoking taxes have found that they often arent. Between 2003 and 2007, states raised cigarette taxes 57 times. Yet according to the National Taxpayers Union, just 16 of those hikes brought in the expected revenue.
I dont expect Obamas pre-k proposal to go very far, but even still, theres something perverse about even proposing to fund a program based on revenues raised by the perpetuation of an activity one claims to want to stamp out. Either you end up with a revenue source that isnt sustainable, or you end up with a program that relies on the continuation of an activity you claim to despise in order to function.
Granted, that hasn't dissuaded legislators from this sort of thing before. Arizona got into budget trouble recently for relying on tobacco industry revenues to fund its Medicaid program.
His expectation for cig sales is too high. Instead, he should increase the tax to $1 Billion per pack. Then, he'd only have to sell a mere 66 packs to fund the pre-K program.
Between 2003 and 2007, states raised cigarette taxes 57 times. Yet according to the National Taxpayers Union, just 16 of those hikes brought in the expected revenue.
Mysteriouslyunless not at all mysteriouslysomeone always has to pay for the supposed free money.
Oh, by the way, where is pre-school so-called "education" mentioned in the Constitution?
Head Start is a failure. It is nothing more than a baby sitting service paid for by taxpayers for Illegal children.
It would make sense if it undid all the anti-smoking laws at the same time.
Lets promote smoking, everywhere and all the time for universal Pre-K. Do it for the poor kids and Do it for Gabby.
I checked my copy of The Constitution...
I can’t find any reference to kindergarten in there anywhere...
Hussein will get that passed because most (likely all) senators/representatives don’t smoke so they will saddle smokers with this. Now, if they had a bill to put a tax on liquor, it would get defeated because THEY ALL DRINK. (Except maybe the Mormons).
And for welfare moms, so-called “students” with children, and ever other scam artist.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Add a $2 tax on cough medicine, too.
There ya go.
"Overwhelm the system" is the name of the game.
Yawn - - - .
This is just another Obamanation Smokescreen topic.
Most of the news from the Obamanation Administration centers around topics that are designed to be just another Obamanation Smokescreen to divert the attention away from Obama managing each new Constitutional Crisis into a Regulation that violates the Constitution.
Never let a Crisis go to waste.
Examples of these Obamanation distractions are most of the social issues that get attention by the Liberal Agenda Media.
Our sorry Congressional RINOs have been to stupid to learn this smoke and mirrors distraction game, and run from bargain to bargain or deal to deal, with nary a thought to use REGULAR ORDER, as designed by our Founding Fathers to protect us from Tyrants such as B. Hussein Obama.
As any card-carrying Obamanation Journalist will tell you:
- - - We must support Obama TO FUNDAMENTALLY CHANGE THE UNITED STATES OF AMERICA into a totally Regulated Communist Obamanation of Debt and Doom.
Afterall, how else can everyone get a fair shot? - - -
BTW, RECEIVING a fair shot will be a lot easier once the destruction of the 2nd Amendment disarms us - - - - .
What is it with these A-holes? Fat Reiner pushed this crud to pay for children’s health care here in the socialist state of California. Anyone that buys into taxing smokers to pay for XYZ is a moron. First of all these are the same idiots that want people to quit smoking, so how brilliant can they be to want to eliminate their targeted revenue stream? Using smokers is just a ruse to start a new entitlement that can never be eliminated, especially when it’s “for the children”.
... ever notice that 'head start' and 'affirmative action' are synonyms ?
You’re right.
It’s past time to repeal and kill these wasteful “programs”!
Why should this burden fall on the adults?
Obama should make candy cigarettes legal for sale again, and add the ‘tax’ to them. Make the pre-schoolers pay for their own daycare. Parents could have the children work evenings in sweat shops or doing yard work at home to earn the money to pay for the candy cigarettes.
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