By Oscar Lovelace
While being a step in the right direction, Gov. Mark Sanford's
proposal for a token increase in South Carolina's cigarette tax is a
dollar short and a day late. In the halls of government there is a
sore lack of understanding of health care in general and a gross
underestimation of the impact of our state having the lowest
cigarette tax in the nation.
The governor's proposal to raise the cigarette tax to 37 cents is
more than a dollar short of the $1.41 state tax per pack recently
passed by President Bush's home state of Texas. The national average
state cigarette tax is now a dollar.
In our state, the smoking-caused health-care costs for Medicaid
and Medicare are about $7 per pack of cigarettes sold. The federal
tax on a pack of cigarettes is 39 cents and our current state tax is
just 7 cents. So for each pack sold we are presently getting 46
cents to fund the $7 of taxpayer expense for smoking-caused Medicaid
and Medicare costs.
Why would our governor propose a 30-cent remedy to a $6.50
problem? To say he is a dollar short is an understatement. Remember
the figure above does not include the smoking-related health-care
costs of the uninsured. The best way to get out of a hole is to stop
digging.
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South Carolina has not raised the tax on a pack of cigarettes
since 1977. The governor's idea is not a day late -- it is actually
three decades late. We are paying dearly for our lack of action --
abroad and at home.
In 2002, a terrorist cell in North Carolina was convicted of
selling $7.9 million of cheap N.C. cigarettes in Michigan by the
tractor-trailer load -- raising millions of dollars for the
Hezbollah militia. According to federal law enforcement officials,
the simple scheme of trafficking cigarettes is difficult to stop.
The traffickers purchase a large volume of cigarettes in states
where the tax is low, then transport them to high-tax states and
sell them at a discount without paying the higher cigarette taxes in
those states. This illegal practice has begun to rival drug
trafficking as a funding choice for terrorist groups.
A smuggler can make up to $2 million on a single truckload of
cigarettes. A truckload contains 800 cases, or 48,000 cartons. Our
low cigarette tax makes it much easier for these organizations to
exploit the health and wealth of our state and nation.
Closer to home, why would we allow our children to become
addicted to the most common -- and preventable -- cause of disease
and death for 30 years and then come up with a ill-conceived plan to
give an income tax break to South Carolina residents instead of
using the funds to remedy our state's health care crisis? The
cigarette tax should be a fair user fee for those who choose to
smoke and not place a burden on those who make the healthy choice of
not smoking.
The governor's own appointed Health Care Task Force recommended,
back in 2003, increasing the cigarette tax and using it as a
renewable source of funding for our state's Medicaid insurance
program -- by doing so the federal government will match every state
tax dollar with three federal tax dollars. We could then fully fund
the Children's Health Insurance Program (CHIP) -- a federal
initiative to cover more indigent children under Medicaid. At
present one in five children in our state does not have health
insurance while the national average is one in nine. By failing to
fully fund the CHIP program we are simply allowing our federal tax
dollars to care for other states' children instead of our own.
Health-care problems don't go away when a child does not have
health insurance -- in fact they often get worse and more expensive.
It costs each of us when a child is unable to attend school because
of illness or a parent has to miss work to care for a sick child.
Increasing our cigarette tax, at least to the national average,
is common-sense public policy. It is the most effective deterrent to
youth smoking, it reduces health-care costs and it saves lives here
and abroad while generating revenue for our failing health-care
delivery system. A 2006 voter survey showed that over 70 percent of
S.C. voters are in favor of a dollar tax on each pack of cigarettes.
As our legislative year begins, let your voice be heard.
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