Originally published in TheSunNews.com.
By: Seanna Adcox, Associated Press Writer
South Carolina’s schools chief called on legislators Thursday to increase the state’s lowest-in-the-nation cigarette tax to the national average and put half of the additional revenue toward education to stop looming teacher furloughs.
“Quit blowing smoke,” said Superintendent Jim Rex, surrounded by leaders of anti-tobacco and education groups. “Let’s act.”
South Carolina’s 7-cents-per-pack cigarette tax has not changed since 1977. Legislators have debated increasing it for several years. They approved a 50-cent tax hike in 2008, but couldn’t override Gov. Mark Sanford’s veto. The latest plan, also for a 50-cent increase, is in the Senate.
But Rex wants to add $1.27 per pack, and permanently tie South Carolina’s tax to the national average, now $1.34, so it automatically increases when other states raise theirs. Rhode Island’s per-pack tax is the nation’s highest at $3.46.
Increasing the tax will prevent youth from picking up the habit, encourage adults to quit, and reduce health care costs, said the Democratic candidate for governor.
Based on studies of how tax hikes affect smoking, the Campaign for Tobacco-Free Kids said Rex’s proposal means 59,300 fewer kids in South Carolina would become addicted to puffing away, and 32,600 adults would quit.
Rex wants half of the new money, projected at $239 million, to temporarily go to education. The House panel crafting the state’s 2010-11 budget has recommended a five-day furlough for teachers statewide to save roughly $100 million, plus eliminating some statewide testing. More education cuts are expected.
“We’ve got to stop thinking the only option before us is to cut services,” Rex said. “These children only have one childhood. If we lose two to three years … we can’t go back and make that up.”
Rex proposes that most of the other half go toward Medicaid, with about 5 percent going to smoking cessation and 2 1/2 percent to promote other agricultural products in the tobacco-growing state.
Having a tax that increases along with the national average should help keep revenues steady, despite fewer people smoking, he said. Since 2002, 46 States, the District of Columbia, and several territories have increased their cigarette taxes numerous times, according to the Campaign for Tobacco-Free Kids.
When the state’s education spending for basic costs returns to 2008 levels, then the half going to education should go to health care, Rex said.
In the meantime, “this will alleviate some of the cuts and minimize the negative consequences,” he said.
But the idea faces a steep uphill battle, especially in an election year.
House Ways and Means Chairman Dan Cooper said he doubts any cigarette tax increase will pass the Legislature in 2010.
And if it does, he said, lawmakers likely will not push prices too much higher than neighboring states. Georgia’s tax is 37 cents per pack, and North Carolina’s is 45 cents.
About half of South Carolina’s 46 counties border those two states, and legislators fear losing the business of people who cross state lines to buy cheaper cigarettes, Cooper said.
Cooper, a Piedmont Republican, also doubted the Legislature would allow any tax to increase automatically.
Sanford still insists that any cigarette tax increase be offset by equal tax relief, either in personal or corporate income taxes.
Frank Lester, spokesman for Reynolds American tobacco company, said South Carolina smokers already saw a tax increase last year, when the federal tax went up nearly 62 cents to $1.01 per pack.
“Real working people pay these taxes in South Carolina,” he said. “Those who tend to smoke tend to have below-to-moderate incomes. They can least afford tax increases.”
Rex said anyone could avoid paying more by quitting.
“I say to them, ‘You’re welcome,’” he said. Rex added that while he never smoked, both of his parents did, and two lifelong friends are dying because of their habit.
Tags: cigarette tax, furloughs
I disagree with Jim on the Tabacco issue. Why Politicians thinks tabacco smokers need to foot the tab is beyond me. They just got hit with a federal hike. Jim why don’t we put it on Alcohol sales this time. Do you drink??
I do not drink, Clarence, and I don’t smoke. However, if our state alcohol tax and/or state tobacco tax are below the national median, we need to get with the program. Are you suggesting that smokers should be encouraged (you get more smokers when the addictive material is cheaper) and then get sick and incur long-term medical care, which is often paid by the state? Anything to discourage destructive behavior is good (this applies to drinking, smoking, overeating, reckless driving via cell phone or drinking, etc). If we also get a benefit to our public schools, that’s just a great bonus. Win-win!