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Obama Wants to Fund Universal Pre-K Using Cigarette Taxes. It Won’t Work.
Reason ^ | 04/13/2013 | Peter Suderman

Posted on 04/14/2013 7:11:20 PM PDT by SeekAndFind

President Obama’s 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 program—but 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, there’s less revenue to be raised from cigarette taxes.

As The Washington Post’s Brad Plumer points out you can see the expected decline within the president’s budget projections: Revenue peaks at $9.8 billion in 2015. But by 2023, the end of the 10-year budget window, it’s already down to $6 billion—and presumably would continue dropping from there, making it plainly unsustainable.

And that’s assuming that these revenue projections are accurate. States that have raised smoking taxes have found that they often aren’t. 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 don’t expect Obama’s pre-k proposal to go very far, but even still, there’s 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 isn’t 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.


TOPICS: Culture/Society; Government
KEYWORDS: cigarette; obama; prek; taxes; undocumentedbullshit
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1 posted on 04/14/2013 7:11:21 PM PDT by SeekAndFind
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To: FReepers; Patriots; FRiends


Stand with Free Republic!

NO to the Marxist's plan for "free pre-schools for toddlers"!!!

Please Contribute Today, Monthly if you can.

2 posted on 04/14/2013 7:13:56 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: SeekAndFind
$66 billion universal pre-kindergarten program by increasing the federal cigarette tax to $1.95 a pack...

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.

3 posted on 04/14/2013 7:15:45 PM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: SeekAndFind
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.

Mysteriously—unless not at all mysteriously—someone always has to pay for the supposed free money.

Oh, by the way, where is pre-school so-called "education" mentioned in the Constitution?

4 posted on 04/14/2013 7:16:53 PM PDT by Standing Wolf
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To: onyx

Head Start is a failure. It is nothing more than a baby sitting service paid for by taxpayers for Illegal children.


5 posted on 04/14/2013 7:18:11 PM PDT by Parmy
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To: SeekAndFind

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.


6 posted on 04/14/2013 7:19:20 PM PDT by sickoflibs (To GOP : Any path to US citizenship IS putting them ahead in line. Stop lying about your position.)
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To: SeekAndFind

I checked my copy of The Constitution...
I can’t find any reference to kindergarten in there anywhere...


7 posted on 04/14/2013 7:19:54 PM PDT by Repeal The 17th (We have met the enemy and he is us.)
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To: SeekAndFind
how bout a $2.00 tax on 40oz beers so that all the deadbeat males that litter the city schools with their spawn get to pay for some of what they sow???
8 posted on 04/14/2013 7:21:55 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: SeekAndFind

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).


9 posted on 04/14/2013 7:27:25 PM PDT by Marcella (Prepping can save your life today. Going Galt is freedom.)
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To: SeekAndFind

10 posted on 04/14/2013 7:37:00 PM PDT by Jack Hydrazine (IÂ’m not a Republican, IÂ’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: Parmy

And for welfare moms, so-called “students” with children, and ever other scam artist.


11 posted on 04/14/2013 7:38:08 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: Chode
how bout a $2.00 tax on 40oz beers so that all the deadbeat males that litter the city schools with their spawn get to pay for some of what they sow???

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Add a $2 tax on cough medicine, too.


12 posted on 04/14/2013 7:39:54 PM PDT by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart and lean not on your own understanding")
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To: Chode
how bout a $2.00 tax on 40oz beers so that all the deadbeat males that litter the city schools with their spawn get to pay for some of what they sow???

There ya go.

13 posted on 04/14/2013 7:40:29 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: SeekAndFind
None of Ubama's schemes are intended to work.

"Overwhelm the system" is the name of the game.

14 posted on 04/14/2013 7:45:13 PM PDT by E. Pluribus Unum ("Deficit spending is simply a scheme for the confiscation of wealth." --Alan Greenspan)
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To: SeekAndFind

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 - - - - .


15 posted on 04/14/2013 7:56:33 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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To: SeekAndFind

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”.


16 posted on 04/14/2013 8:07:48 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: Parmy; onyx
Head Start is a failure.

... ever notice that 'head start' and 'affirmative action' are synonyms ?

17 posted on 04/14/2013 8:08:31 PM PDT by UCANSEE2 (The monsters are due on Maple Street)
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To: UCANSEE2

You’re right.

It’s past time to repeal and kill these wasteful “programs”!


18 posted on 04/14/2013 8:11:08 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: SeekAndFind

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.


19 posted on 04/14/2013 8:12:52 PM PDT by UCANSEE2 (The monsters are due on Maple Street)
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To: SeekAndFind
Obama: "I'll use everyone's 401k money to cure childhood cancer."
20 posted on 04/14/2013 8:14:38 PM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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