COLUMBIA, S.C. - A coalition of groups that
want to increase tobacco taxes to pay for state Medicaid programs
says it's ready for a third bout with the Legislature.
This time the Cigarette Tax For Health Care Coalition is rallying
behind a cigarette-smoking piggy bank logo on bumper stickers. But
the message is the same: Raise the cigarette tax to provide a
long-term, reliable way of paying for health care programs for the
aged, disabled and poor.
The coalition includes hospitals, health and disability groups
and the South Carolina Chamber of Commerce.
The cigarette tax has failed in the past two legislative sessions
in the face of pledges of no tax increases and leaders who insist
Medicaid reform in the Republican-controlled General Assembly.
The outcome will be different this year, said Sue Berkowitz,
executive director of the South Carolina Appleseed Legal Justice
Center. "I do think the votes will be there," she said.
There is more pressure this year for raising cigarette taxes,
Berkowitz said. The state was able to head off deep cuts in Medicaid
programs this year with the help of one-time federal money, raiding
reserves and by squeezing spending in other state agencies. Those
options aren't available in the coming year, Berkowitz said.
Last year, the coalition pushed an increase of 53 cents a pack on
top of the current tax of seven cents, the nation's fourth-lowest
cigarette tax. Berkowitz says now that 63 cents is the minimum
increase that should be considered. That would raise nearly $200
million, based on state Board of Economic Advisors projections.
Republican Gov. Mark Sanford wants the cigarette tax raised to a
total of 68 cents and would combine that with a sales tax on lottery
tickets, generating $222 million. However, Sanford would use the
extra money to reduce the state's income tax.
Berkowitz worries that plan won't guarantee money for Medicaid.
Sanford spokesman Will Folks says the governor's budget will fully
fund Medicaid programs, but he would not discuss details of the
plan.
Key lawmakers are still saying no to a tax increase.
"We need Medicaid reform before we begin increasing taxes," House
Speaker David Wilkins, R-Greenville, said. Wilkins worked against
the tax increase last year. "We need to get a handle on this
ever-increasing Medicaid budget that we have."
The House passed a Medicaid restructuring bill last year that's
now before a Senate committee. Senate President Pro Tem Glenn
McConnell, R-Charleston, expects to see that measure come up for
debate.
The cigarette tax coalition says it will do more this year to
emphasize the fairness of a higher tax on cigarettes because
smoking-related illnesses tax everyone. "This hidden tax will
continue to increase without decisive action" in the Legislature,
said John Lumpkin, a board member of the State Chamber of
Commerce.
Arguments like that "are just not very persuasive to me,"
McConnell said. "We've got another crowd who says those who eat
high-cholesterol foods cost people money."
The debate comes down to "crunching numbers and choosing new
ideas" to "fix the Medicaid problem, but also contain its cost,"
McConnell
said.