OPINION & EDITORIAL
A Kool compromise
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by Badger Herald Editorial Board
Friday, October 19, 2007
Among the more contentious of the multitude of holdups in the state budget negotiations is the cigarette tax. Gov. Jim Doyle and Democrats in the Legislature have advocated for a $1.25 tax increase on each pack of cigarettes sold in Wisconsin. On the other side of the aisle, Assembly Speaker Mike Huebsch, R-West Salem, originally opposed the increase, then agreed to accept the governor’s proposal in full, and now is only willing to hike the tax by 75 cents per pack.
It is time — indeed, well past time — for the two sides to reach a compromise on the issue. Democrats are understandably frustrated by Mr. Huebsch’s retreat from his earlier acceptance of the full $1.25 hike. An issue that looked to have been resolved no longer is, due to the Assembly speaker’s backpedaling.
On the other hand, Democrats in the Legislature have shown little willingness to consider adopting a tax increase smaller than the one originally proposed by Mr. Doyle. If a compromise is to be reached, it is not unreasonable to expect Democrats to back off from their $1.25 figure.
We have supported the idea of an increase of the tax since Mr. Doyle proposed it. The rationale for a cigarette tax is sound, resting on the same logic used to justify a gas tax paid by motorists to fund road construction projects. According to Mr. Doyle, the state uses $500 million in Medicaid funds annually to treat tobacco-related illnesses, so asking smokers to help foot the bill — and alleviating the burden on general taxpayers — is a fair policy. The tax also works to promote public health and discourage people, especially teenagers, from taking up smoking.
However, it must be remembered that tobacco is a legal substance, and the state needs to be careful to not enact a tax that is overly punitive on those who wish to use it. With a 77 cent tax per pack on cigarettes, Wisconsin currently ranks 29th in the country. If the full $1.25 proposed increase were to go in effect, Wisconsin would ascend to the top four nationally — and have a higher rate than any Midwestern neighbor.
Viewed in this light, it seems clear the $1.25 proposal is too steep. The parties can surely reach a reasonable compromise, so long as Democrats lower their sights while Mr. Huebsch continues to accept that an increase of some degree is a political reality. Much else remains to be resolved relating to the budget, but this would be a commonsense place to start.
Anonymous (October 19, 2007 @ 11:24am):
"However, it must be remembered that tobacco is a legal substance, and the state needs to be careful to not enact a tax that is overly punitive on those who wish to use it."
"According to Mr. Doyle, the state uses $500 million in Medicaid funds annually to treat tobacco-related illnesses, so asking smokers to help foot the bill -- and alleviating the burden on general taxpayers -- is a fair policy."
Punitive? It looks like a fee for service to me.
Anonymous (October 21, 2007 @ 10:31pm):
Michigan tax is $2.02/pack. I thought they might be considered a "Midwestern neighbor"
Anonymous (October 22, 2007 @ 3:20pm):
I personally wish Doyle had kept the tax increses he wanted to do on hospitals and oil companies, instead of trying to impose yet another tax on cigarettes. I don't even smoke, and having several friends who smoke, realize that an increased tax on tobacco isn't an intelligent idea to do, especially since such a tax hike will backfire, and smokers will just cross state borders to purchase cigs in Iowa, Minnesota, and Illinois.
I do love how politicians always ridiculously target smokers for more tax revenue, as if they're the cause, seemingly(!, lol) of all problems. *sarcasm*
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