“Governor Sanford has missed yet another opportunity to reject special interest politics and move us in the direction of better health and a more stable economy. The fifty-cent cigarette tax increase is woefully inadequate; it should be raised to the national average. But, this is an important first step toward reaching that goal, and I urge the General Assembly to override his veto. When I become Governor, I will continue to fight to raise the cigarette tax to the national average to create jobs, improve our health, and deal with the state’s fiscal crisis.”
Posts Tagged ‘cigarette tax’
Read Jim’s Statement re: Sanford Cigarette Tax Veto
Wednesday, May 12th, 2010Rex rejects GOP view that SC must accept special interest status quo
Friday, February 12th, 2010Campaign News
(COLUMBIA) In a debate today sponsored by the SC Hospital Association and featuring Democratic and Republican candidates for Governor, Andre Bauer charged that Jim Rex is “a dreamer” to think that Columbia would take action to raise the cigarette tax to the national average because, according to him, that’s now how things work in Columbia. McMaster also reiterated his opposition to the proposal that would create jobs, improve health care, and keep 48,000 classroom teachers from losing a week of pay.
In response, Rex issued the following statement:
“It’s naïve for Republicans like Andre Bauer and Henry McMaster, who have been running things in Columbia for years – and running our state into the ground in the process – to think that the voters will accept the special-interest-driven, do-nothing status quo in November. That kind of thinking is exactly why we need change in our leadership. I have put forward a plan to create thousands, if not tens of thousands, of good jobs in the health care sector and help families meet soaring medical bills. In response, the only things coming from career politicians in Columbia are excuses and a stubborn unwillingness to find solutions or take any action that will inconvenience their special interest friends. My proposal is a doable plan of action already taken by most states in the country – and I have yet to see any plan put forth by Mr. McMaster or Mr. Bauer that would accomplish a fraction of what my plan does. South Carolinians are hurting and they expect action from Columbia – not patronizing explanations of why they can’t do the people’s business.”
McMaster opposes Rex’s cigarettes plan
Tuesday, February 9th, 2010Originally posted in The State.
By: John O’Connor
A leading Republican candidate for governor said Monday he would not support raising South Carolina’s cigarette tax – the nation’s lowest – under any conditions.
Attorney General Henry McMaster, spurred by a weekend of back-and-forth discussion on the issue with Democratic gubernatorial candidate Jim Rex, said Monday he would not support raising the tax, spokesman Rob Godfrey said.
Rex has proposed raising the tax by $1.24 a pack to the national average, using the more than $200 million raised to pay for health care and to avoid requiring teachers to take a week of unpaid leave.
The two men have agreed to debate the issue.
The cigarette tax is an issue in the governor’s race. Lawmakers passed a tax hike in 2008 only to have it vetoed by Republican Gov. Mark Sanford. Lawmakers fell short of the two-thirds support needed to override that veto.
About three-quarters of state residents support raising the tax to $1 a pack, from its current 7 cents a pack, according to a 2008 survey by the Republican-leaning polling firm Public Opinion Strategies. The poll was conducted for the S.C. Tobacco Collaborative, a coalition of nonprofit and public health groups that support raising the cigarette tax to cut smoking rates.
Sanford has said he would support a cigarette tax increase if it included an equal tax cut somewhere else in the budget. But Godfrey said McMaster opposes any cigarette tax increase.
“Henry McMaster is not raising taxes under any circumstances,” Godfrey said, noting McMaster had signed a national anti-tax pledge. “It’s a good way to make a bad economy worse.”
Rex spokesman Zeke Stokes said raising the cigarette tax could provide a boost to the state’s health care industry, particularly rural hospitals struggling to stay open amid state budget cuts.
The federal government would match every dollar the state puts into health care with up to four dollars, Stokes said.
“We’re leaving a lot of money on the table,” Stokes said, estimating the federal match at from $500 million to $700 million. “An infusion of cash could help (the health care industry). Jobs are a huge, huge part of this.”
In a news release Saturday, Rex noted McMaster has accepted $10,500 in campaign contributions from two tobacco companies.
McMaster thinks the cigarette tax debate points out a fundamental difference between Republicans and Democrats, his spokesman said.
“Dr. Rex wants to raise taxes to fund government spending,” Godfrey said. “Henry McMaster wants to cut taxes to create prosperity.”
McMaster has said comprehensive tax reform is a key part of improving the state’s economy, but Godfrey said the no-tax pledge applies to tax reform as well. That means tax reform could not include rescinding any of the state’s sales tax exemptions – for twine, newsprint, certain prescription drugs and other items. Those exemptions are worth $2.7 billion a year, according to the Board of Economic Advisers.
Lawmakers have asked a state panel to study the state’s tax code and suggest ways to make the system fairer and more stable. Those recommendations are expected later this year.
Stokes said Rex is not proposing to raise property, income or business taxes. He also criticized McMaster, saying he has provided no specifics for his jobs plan.
“Calling us liberals is not an economic plan,” Stokes said. “Saying we have to cut taxes to create jobs is not an economic plan.”
Rex Campaign Opens Headquarters Tonight
Monday, February 8th, 2010Campaign News
(COLUMBIA) – State Superintendent of Education Jim Rex, along with his wife Sue, will be on hand tonight for the grand opening of his campaign headquarters in Columbia. The event will begin at 6 p.m.
Rex will make remarks, including addressing the weekend attack launched by Republican candidate for Governor Henry McMaster regarding Rex’s plan to increase the state’s cigarette tax to the national average.
| What: | Rex Campaign Headquarters Grand Opening Event |
| Where: | 1529 Hampton Street, Suite 110 Columbia, SC |
| When: | 6:00 until 8:00 p.m. |
Rex responds to latest attack from McMaster
Monday, February 8th, 2010Campaign News
Today, State Superintendent of Education released the following statement in response to Henry McMaster’s latest criticism of his plan to use the cigarette tax to put South Carolina back to work, improve health care, and stop the state’s 48,000 teachers from being forced to take a five-day pay cut.
“Henry McMaster has put forth no plan that even comes close to resolving the broad range of challenges facing our state. I will be happy to meet Mr. McMaster in a public forum to discuss the merits of our two plans, as soon as he puts one forward. But let’s be clear – my plan does not raise property, income, or business taxes. I hope Mr. McMaster will keep our focus on creating jobs and rebuilding this economy, instead of relying on the same old political rhetoric and misinformation that have done nothing to move our state forward. ”
In addition, Rex launched an online petition drive, urging South Carolinians to join him in the fight to increase South Carolina’s cigarette tax to the national average. A link to the petition may be found on the Rex campaign web site at www.jimrex.com.
“It’s time to send a message to the career politicians like Henry McMaster that South Carolinians expect their leaders to put them first – not the special interests,” said Rex.
While McMaster is opposing the cigarette tax, he has taken thousands of dollars for his campaign for Governor from big tobacco special interests.
Sign the Petition!
Monday, February 8th, 2010
Campaign News
Last week, I announced a proposal to raise the cigarette tax to the national average with the proceeds split between health care and education. I hope you will support it. Challenging times, by nature, do not lend themselves to simple fixes. They require bold solutions.
At its core, it’s a plan to create and preserve jobs and put South Carolina on sound economic footing, a plan to improve health and wellness, and a plan to keep our state’s federal tax contribution here at home, instead of going to help other states. It’s also a plan to prevent 48,000 teachers from being furloughed for one full week, and in addition to the negative impact on our kids’ education, this kind of furlough would be a $100 million dollar hit to our economy.
To learn more about the plan, click here.
Today, I am asking you to support our effort by signing an online petition urging your State Legislators and the Governor to make this a priority. To sign the petition, click here. This is an idea that is long overdue. South Carolina has been debating this course of action for years, and it’s time to pass this plan that would do so much for the state when it comes to creating jobs, improving our fiscal outlook, and improving both health and education.
Thanks for your support.
Jim Rex
McMaster attacks Rex economic proposal, takes thousands from big tobacco
Monday, February 8th, 2010Campaign News
(COLUMBIA) On Friday, Republican Henry McMaster launched an assault on a plan put forward by Jim Rex this week to increase the state’s cigarette tax to the national average – a plan that would infuse hundreds of millions of dollars into South Carolina’s economy, creating and preserving badly needed jobs. On his Twitter account, McMaster wrote, “You cannot tax your way back to prosperity.” Meanwhile, McMaster has taken thousands of dollars from big tobacco companies in his bid to become South Carolina’s governor.
“Henry McMaster hasn’t learned: You can’t fix an economy and create jobs if you are addicted to special interest money and aren’t willing to change the policies that have driven our economy into the ground. My plan will help our economy, create good health care jobs, prevent teacher furloughs and put our budget on firmer fiscal footing without raising income taxes on hard working South Carolinians at a time they can afford them least. When Mr. McMaster comes up with a plan that will accomplish these goals, I will be happy to debate our respective plans. Until then, our state doesn’t need a lesson in prosperity from a career politician whose party has left us with some of the highest unemployment in the nation,” said Rex.
McMaster has accepted the following contributions from tobacco companies:
| Altria (formerly Philip Morris) | Attorney General | 6/30/2009 | $ 3,500 |
| Reynolds American | Attorney General | 11/18/2008 | $ 2,500 |
| Reynolds American | Attorney General | 3/31/2008 | $ 1,000 |
| Reynolds American | Governor | 9/1/2009 | $ 3,500 |
“I challenge any opponent of this measure to present an alternative that would do so much for the state when it comes to creating jobs, improving our fiscal outlook, and improving both health and education. It’s time for our legislature to pass this law, and it’s time for the Governor to sign it and send a strong message to our state’s teachers, families, small businesses and communities that we’re putting them first – not the special interests,” said Rex.
For more information, visit Jim Rex on the Web at www.jimrex.com.
Rex: Raise SC cigarette tax to national average
Friday, February 5th, 2010Originally 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.
Rex: Smokers can stop teacher furloughs
Monday, February 1st, 2010Originally published in The State.
By: Gina Smith
The state’s schools chief Jim Rex, who is also a candidate for governor, is spearheading a push to increase the state’s cigarette tax to the national average to avert teacher furloughs.
Monday, Rex said he’s working to put together a statewide coalition of educators and health care advocates to increase the tax by $1.27 a pack instead of the 57 cents a pack increase proposed during the last legislative session. The first 57 cents, estimated to raise $147 million annually, would go toward health care costs and smoking prevention programs as previously proposed. The additional overage created by going to the national average would keep teachers in the classroom next school year. House budget writers, facing a budget deficit, are considering furloughing teachers and educational support staff for five days.
“This (proposal) is not inspired by my candidacy for governor,” said Rex Monday morning. “If anything, it’s probably risky politically. But as we’ve looked at these cuts to education, as we’ve looked at the consequences, this just seems the time to do it.”
Once the budget crisis subsides, Rex said revenue from the tax increase should go solely toward the state’s healthcare needs.
“I would not like to see education funding long term dependent on this revenue source,” Rex said. “But short term, because of the budget crisis we find ourselves in, we need to split it between the immediate needs of health care and the immediate needs of education.”
Rex, looking to garner support for his plan, will meet today with health care groups who support increasing the tax. South Carolina has the nation’s lowest cigarette tax at 7 cents a pack. Lawmakers passed a bill last year to raise the tax to 57 cents, but Gov. Mark Sanford vetoed the measure. Sanford said recently he would again veto an increase in the cigarette tax that is not accompanied by tax cuts elsewhere that equal $147 million.