 Governor chills plans to raise tax on cigarettes_files/brand.gif)
 Governor chills plans to raise tax on cigarettes_files/t.gif){kind=small}
|
||
| ||
| Monday, Jan 27, 2003 |
|
|
|
|
Subscribe to the H-J | | ||||
|
| |||||||||
|
Posted on January 25, 2003 Governor chills plans to raise tax on cigarettes COLUMBIA -- On Wednesday, House Speaker David Wilkins thought the General Assembly would raise the cigarette tax this year. But on Thursday, he was not so sure. "It's in question," Wilkins said. What changed? Gov. Mark Sanford said in his State of the State speech that he didn't like the tax. Wilkins said the tax increase would still be "hotly debated" during the spring session but no longer was a done deal, especially since it might face a Sanford veto. The proposal to raise the per-pack cigarette tax to pay for Medicaid health costs has been gaining steam for a year. The Medicaid Coalition, comprised of 50 groups from the South Carolina Chamber of Commerce to families of the mentally ill, has mounted a professional public relations campaign supporting the tax. The group commissioned a poll two weeks ago that showed 77 percent of South Carolinians favored raising the per-pack tax from 7 cents to 60 cents, the national average, in order to pay for Medicaid. Legislators say they recognize the need to create a stable source of funding for the public health care program, a rapidly growing chunk of the state budget. But advocates were scrambling to figure out how to keep momentum in light of Sanford's remarks. Sanford said he didn't like raising taxes philosophically, and would consider raising the cigarette tax only if it was accompanied by a commensurate lowering of taxes in another area, preferably income taxes. The Medicaid Coalition said it wouldn't back down. "We are extremely concerned about his position on the cigarette tax because we fear an impending crisis in health care funding." Medicaid serves one in five South Carolinians, mostly children, the elderly, the disabled and people with catastrophic illnesses. The coalition said its proposal to raise cigarette taxes is the only concrete plan to handle some of the steady and rapid growth in the $3.6 billion Medicaid budget. Dr. Bill Schmidt, president of the South Carolina Children's Health Collaborative, which comprises the state's four children's hospitals, said he was discouraged. Sanford said the cigarette tax was popular but against his principles. Schmidt said, "It might be against his principles to raise taxes but he's got a leadership issue at the same time. "That's what happens when you're in high places, one principle comes up against another one and you have to decide." Sanford said he didn't plan to sign any tax increase without reform to Medicaid's program and without lowering taxes somewhere else. "Ideally, I'd like to see it tied to a net tax decrease, structural reform of the Medicaid system and then make absolutely sure that those funds are tied exclusively to Medicaid," said Sanford, in a written statement. Wilkins, the House speaker, said he was considering throwing his support behind a cigarette tax until Sanford's speech. Now he's not sure. "Does that mean you can't pass it? No," Wilkins said. "But it makes some people that are sort of on the fence wonder if it's worth the effort to push it forward." |
|
|
|
| |||||
|
All material ©2003 Spartanburg Herald-Journal | | |
| |||
 Governor chills plans to raise tax on cigarettes_files/affiliate_120x240.gif)