Wilkins asks Republicans to oppose cigarette tax

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Speaker David Wilkins asked House Republicans to join him in opposing a cigarette tax increase, and Rep. Lewis Vaughn, R-Taylors, said it appeared the House leader swayed enough members to ensure no such tax would pass.

"I don't think (the tax) is the right thing to do," Wilkins said.

"I'm asking members to vote against the cigarette tax if they feel comfortable voting against it. I'm not asking them to break their word. I'm not asking them to do anything they don't feel right doing. I think it will be a close vote," Wilkins said.

Gov. Mark Sanford proposed last week a 53-cent per pack cigarette tax increase immediately in exchange for future reductions in the state income tax that would eventually lower that tax to 5 percent from 7 percent.

Advocates of a 53-cent per pack cigarette tax increase, expected to produce about $170 million in new revenue, say the money is necessary to pay for Medicaid health care services for the poor and elderly. The federal government matches about $3 for every $1 the state puts into the program. About 22 percent of South Carolina population are eligible for Medicaid.

Will Folks, Sanford's spokesman, played down the difference between the speaker and the governor, saying, "We're all on the same team."

"We all have the same objectives: funding Medicaid and protecting the state's taxpayers while we do it. The governor is looking for a bridge between the House and Senate proposals that get us there," Folks said.

Sanford's office announced late Tuesday that the governor would visit Palmetto Richland Hospital to discuss his income tax/Medicaid proposal.

Wilkins said he thinks the governor is "in a precarious position" because the Senate might send him a cigarette tax increase in the budget without the income tax credit.

"Then he'd end up with a big tax increase he said he'd veto," Wilkins said.

Wilkins supports a Medicaid financing plan that would refinance the state tobacco settlement bonds to add revenue. The plan also uses $45 million of non-recurring money to pay recurring costs, and takes $20 million from public schools.

Rep. Rex Rice, an Easley Republican who has been a vocal supporter of increasing the cigarette tax to pay for Medicaid healthcare funding for the poor and elderly, said he has not given up his fight to have the tax included in Medicaid overhaul legislation.

That legislation could hit the floor of the House this week.

But Rice said the House Republican leaders, including Majority Leader Rick Quinn and Ways and Means Committee Chairman Bobby Harrell, made clear in their Tuesday caucus meeting that they do not want the tax increase to pass in the House.

"They said it was a very important issue to them. They felt like we should not deal with a tax increase at this point," Rice said.

"I have not changed my position. We need to fund healthcare with a tobacco tax. I stuck my neck out, and I'm not going to pull it back just because I've been jumped on. I hope they would respect my decision on that just as I respect their decision to fight me on it," Rice said.

"It's gotten tough all of a sudden," Rice said.

Vaughn said he had considered voting for a cigarette tax that is less than the 53 cents the tax advocates is seeking.

"The speaker is leaning on me to support him on this and I want to support if I can, but there are no iron-clad deals yet. I don't think there's enough support to pass it now," Vaughn said.

"The speaker and the other leadership said they don't want a tax increase this year, and asked for our help," Vaughn said.

Rep. Bob Walker, R-Landrum, said he plans to vote in favor of the cigarette tax.

Asked how he would vote if the speaker asked him to vote against it, Walker said, "I would hope he doesn't do that. He should respect everyone's decision."

"I'm concerned we're going to make this a partisan issue, and it should not be one," Walker said.

Walker said cigarette smoking contributes to the state's cost of health care, and should be taxed. South Carolina currently levies a tax of 7 cents per pack, while the national average is 60 cents.

"I'm pretty conservative, but those people who cause the need for the services, I don't have a problem voting for a tax on them to pay for the services," Walker said.

A coalition of insurance, healthcare, children's advocates and business leaders sent out an e-mail Tuesday urging its members to put pressure on legislators to vote in favor of the cigarette tax to support Medicaid.