Money, money, money -- it's in short supply and everyone wants it, especially state government, which raises its money through taxes. In fact, taxes have been an important part of the debate establishing priorities for state government for decades. While the financial outlook has been brighter in recent months, the debate intensified in recent years because of shortfalls in tax collections, which in turn has jeopardized many important programs, including Medicaid.

Certainly, increasing taxes is never popular, but increasing certain taxes makes more sense than others. A report last month from the American Cancer Society offers an opportunity for state lawmakers to re-examine some of their objections to increasing one of South Carolina's sin taxes. The society's examination of Georgia's cigarette tax, which was enacted a year ago, concludes that a higher tax in the Palmetto State wouldn't drive smokers across the state line to fuel their habit. Georgia trippled its tax from 12 cents to 37 cents per pack and the Cancer Society concluded it didn't result in smokers heading to South Carolina for cigarettes.

Increasing the cigarette tax in a state where at least 25 percent of adults and 36 percent of high school students smoke could have several benefits:

It could lead to a change of image for the state. An American Lung Association 2003 report gave South Carolina a grade of "F" in a number of categories, including smoke-free air, youth access to cigarettes, tobacco prevention and control spending and cigarette taxes;

It could raise a large sum of money to help offset the cost of the state's Medicaid program, the health insurance program for the poor. According to the Associated Press, statistics from the Georgia Revenue Department show tobacco tax collections have more than doubled to $227 million during the 2004 fiscal year from $111 million in 2003. South Carolina's tax revenue from cigarettes has remained static for about three years

South Carolinians pay the fourth lowest cigarette tax in the nation -- 7 cents per pack. The cigarette tax is lower only in Kentucky and Virginia (3 cents per pack) and North Carolina (5 cents) than in South Carolina. The other 46 states have a higher tax, and 35 states increased the cigarette tax within the last two years;

Besides raising revenue, another good reason to raise the tax is that a higher price may discourage cigarette use, especially among young people and lower-income people who don't have excess disposable income, but who are likely to use Medicaid. South Carolina hasn't raised the cigarette excise tax since 1977 when they cost 50 cents per pack. Today they cost about $3 per pack from a vending machine; and

South Carolina lawmakers have found last-minute funding for two consecutive years to preserve the Medicaid program, but loss of matching funds would jeopardize $2.25 of federal funds for each $1 the state invests.

Shoring up funding for the Medicaid program alone should be enough reason for lawmakers to increase the cigarette tax, but when coupled with a potential reduction in cigarette usage it should be a winner.