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Cigarette tax may rise

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Also by Keegan Kyle:

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Doyle set to sign off on ethics (February 2, 2007)
Volunteerism on the road (October 19, 2007)
Down and dirty on campus sanitation (October 11, 2007)

by Keegan Kyle

Thursday, January 25, 2007

Wisconsin tobacco users may see higher prices and stricter regulations if an initiative announced Wednesday by Democratic Gov. Jim Doyle passes through the state Legislature.

The governor proposed increasing the current cigarette tax by $1.25 in the state's biennium budget and encouraged lawmakers to pass a statewide ban on smoking in public places, which would include bars and restaurants.

"Right now, the governor believes this is the best way to move forward … with health issues in Wisconsin," Doyle spokesperson Carla Vigue said. "The initiative is expected to reduce the number of kids who want to start smoking and help adults who want to quit smoking."

Doyle's proposal also gives anti-smoking efforts $30 million annually from interest generated by a permanent $600 million fund from tobacco settlement bonds. The additional cigarette tax revenue — estimated at around $250 million each year — would be dedicated toward paying for tobacco-related illnesses, Doyle proposed.

Some critics of the tax hike believe it is the governor's way of balancing the biennium budget, which faces a $1.6 billion deficit.

"This was simply a way for [Doyle] to grab a whole bunch of money for the budget," said Mike Mikalsen, spokesperson for state Rep. Steve Nass, R-Whitewater. "What he's doing here is finding individual groups to tax."

Other Republican officials have also criticized the governor for a re-election pledge that he would not increase taxes to solve the budget shortfalls. Vigue said Doyle promised not to increase income or corporate taxes during his campaign.

"The governor has held this issue close to him since he was attorney general," Vigue said. "It's been one of those things he's been trying to do for a long time."

Health organizations across the state have applauded the initiative, including the Wisconsin Medical Society.

"From our standpoint, the biggest benefit is the health," said Mark Grapentine, senior vice president of government relations. "The revenue is the second part. I don't think it was a strictly budget issue."

Grapentine said large tax increases on cigarettes work better than incremental increases because they have a "shock effect" on smokers' wallets.

"There is extra revenue but all the evidence shows a significant increase … results in a significant impact," Grapentine added.

Mikalsen said he doubts the initiative will be as effective as some would like to think, saying, "people will always find a way to get around [the tax]." Both Iowa and Illinois would have lower cigarette taxes than Wisconsin if the Legislature approves Doyle's $2.02 increase.

Some supporters of the initiative said the statewide smoking ban could actually help taverns by giving municipalities with smoking bans a competitive chance against surrounding towns.

"In a lot of ways, you could say it helps level the playing field," said Josh Wescott, spokesperson for state Senate Majority Leader Judy Robson, D-Beloit. "But this really is a bold initiative."

Negotiations are expected in the coming weeks with tobacco interest groups and the Wisconsin Tavern League, a powerful state lobbyist.

As of press time, representatives of the Wisconsin Tavern League did not return phone calls from The Badger Herald.

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Anonymous (January 25, 2007 @ 9:33am):

It's always a good day in Wisconsin when a tax increase is being touted as an "initiative". This will be a good way to pad another fund for Doyle to misuse when the teachers want more money next budget and there isn't any in their own fund.

Anonymous (January 25, 2007 @ 12:23pm):

They say to tax anything that you want less of.

A tax on tobacco is a tax on stupidity. Less supidity would be a good thing, I say jack the tax up to the sky! And make sure to catch the internet buyers. And especially make sure to catch anybody who brings them over the border into the state from another state or country, including the Indian properties.

Anonymous (January 25, 2007 @ 12:32pm):

I agree with response number 1. What we really need are tax cuts on cigarettes to spur economic growth. Think of the hospitals, doctors, nurses, iron lungs, ct-scanners, surgical instruments, and medications that are needed to treat smoking-related disease. The health care industry can keep the American economy rolling for years.

Anonymous (January 25, 2007 @ 11:16pm):

Make tobacco tax free to save Social Security!

Howzat you ask?

Dead people don't collect benefits.

Anonymous (April 16, 2007 @ 7:47pm):

well it got me 2 quit im 16 and was smokin since i was about 13 so i would say it worked well so go ahead and put the tax rise through

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