Kentucky to Raise Cigarette Tax

A proposal to raise the cigarette tax 40 cents per package and raise taxes on all other smoking products acquired support a few days ago from Government representative. It was one of diverse changes to sakes tax code advised by the commission, which has a deadline till December 2012 to draft a proposal for lawmakers that would make Kentucky’s state tax more competitive.

The commission approved a proposal that would boost Kentucky’s tobacco tax from 60 cents to $1.00 per package and boost the taxes on all other tobacco products. The members of tax commission considered the tax increase as a way to discourage youngsters from smoking and lift revenue.

Several members lobbied for a $1.00 per pack boost. “In case you raised it by $1, you will drop smoking rate among youngsters by 15%. You will save thousands of dollars in health care costs,” stated Sheila Schuster, an executive director of the Advocacy Action Network.

Tobacco Tax Proposed to Fund Medicaid

More people are turning towards Utah's Medicaid program at a time when there's fewer dollars to go around. Since the recession began, the program has seen a 20 percent enrollment increase. The program went from 160,000 participants to 200,000 participants. "What Medicaid does in times like this is it catches those people who can't get health care coverage on their own anymore," said Lincoln Nehring, Utah's Medicaid Policy Director.

A new report by the Utah Health Policy Project made several recommendations as to how the state can not only save money but raise revenue for Medicaid. The report suggests the state work harder at preventing Medicaid fraud, revise the program's preferred drug list, and increase tobacco taxes from 70 cents per cigarette pack to two dollars per pack.

"If you look long term for the state of Medicaid, a tobacco tax increase will probably serve the program and the health of Utahns well." says Nehring.

Last year, a similar tax increase failed, but Medicaid advocates believe the state's current budget deficit will force lawmakers to act.

Top senate leadership responded to the tobacco tax idea. Senator Wayne Neiderhouser says he doesn't think it will solve Medicaid's problem in the long term. He would only support a tobacco tax increase if the money went towards Utah's tobacco trust fund.

Senator Michael Waddoups says the plan would likely have enough votes to pass the senate, but only if the governor approves.

Raising cigarette tax may backfire

Raising Michigan's $2-a-pack cigarette tax another 25 cents -- an idea floated by Gov. Jennifer Granholm -- would generate minimal revenue and encourage more smuggling from other states with lower cigarette taxes, according to a new study.

The report by three economists was commissioned by a lobby group for gas station convenience stores, which plans a news conference today. The study concludes that a 25-cent tax cigarette tax hike -- a 12.5% increase -- would produce 8.5% more in tobacco tax revenue.

The report says the 25-cent tax increase would cost convenience stores a combined $6.5 million because smokers, who buy other things at the stores, would buy fewer cigarettes or shop elsewhere, such as Ohio and Indiana, where tobacco taxes are lower.
State senators' spat won't require discipline

A state Senate investigation into a heated exchange between two members in a Capitol elevator June 17 found insufficient evidence of behavior that would require disciplinary action, Majority Leader Mike Bishop, R-Rochester, announced Monday.

Bishop, in a letter sent to Sen. Irma Clark-Coleman, D-Detroit, said he would not take any formal action against Sen. Roger Kahn, R-Saginaw, whom Clark-Coleman had accused of acting in a threatening manner during an argument over state spending.

The investigation by Senate staff concluded that there was little evidence beyond Clark-Coleman's assertion.

Tobacco tax will save lives, cut medical costs

As a practicing physician for over 20 years in Kern County, I have seen many patients who have been affected by smoking -- including those who have never smoked -- and I want to do everything in my power to make sure that early detection of lung disease, cancer research and smoking prevention programs are growing in California.

SB 600, a bill authored by state Sen. Alex Padilla and co-sponsored by the American Cancer Society, the American Heart Association, the American Lung Association and other health organizations, does just that.

SB 600 would increase the cigarette and tobacco tax in California by $1.50 per pack, a portion of which would go the tobacco control and lung cancer research, and would most importantly reduce the number of teen smokers. Smoking is the largest preventable cause of death in California, and by reducing consumption through an increased tax, we can save hundreds of thousands of lives and millions of dollars in health care costs. It's about time that California increase the cigarette and tobacco tax.

SB 600 will not only save lives, but will keep nearly 361,000 kids from becoming addicted. In my years as a doctor in the San Joaquin Valley, where air pollution is higher and asthma more prevalent than other parts of the state, I understand the need to detect and treat emphysema, asthma, bronchitis and other lung diseases immediately, especially in children.

One in five children in the San Joaquin Valley have asthma, in Kern County alone there are over 20,000 cases of pediatric asthma and nearly double the amount of adult asthma cases. SB 600 will help to reduce the growth of those numbers by expanding the tobacco control program, deterring teens from starting to smoke and reducing the number of smokers.

California hasn't increased the tax on cigarettes and tobacco in 10 years, but the incidence of heart and lung disease and smoking related cancers continues to rise, claiming nearly 40,000 lives annually. SB 600 is projected to reduce youth smoking by 21 percent, cause nearly 190,000 current smokers to quit, prevent more than 165,000 premature deaths and save California $8.1 billion in health care costs.

SB 600 will also help California get back on track by contributing $1.2 billion to the state's general fund in the first year alone. The budget deficit in California has forced already existing health and education programs to be cut and in some cases, eliminated, but SB 600 would help close that gap by contributing to the general fund.

The funds not used for tobacco prevention can help save some of the vital health and education programs threatened by California's budget deliberations.

Big tobacco companies have paid hundreds of millions of dollars to avoid a tax increase in California- and they've gotten away with it for over a decade. Nine states (with both Democratic and Republican governors), Arkansas, Delaware, Florida, Hawaii, Kentucky, Mississippi, New Hampshire, Rhode Island and Wisconsin, have enacted tobacco increases in 2009. There is no better time than right now to increase the tax; it will save lives, prevent tobacco addiction by our teens, reduce future health care costs and help balance the state budget. It's about time.

Ravi Patel, MD, is a board certified oncologist and founder of the Comprehensive Blood and Cancer Center. He lives in Bakersfield.