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Cigarette tax hike could swap for income taxes
State's levy lowest in nation

Published: Thursday, December 14, 2006 - 6:00 am


By Paul Alongi
STAFF WRITER
palongi@greenvillenews.com


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Gov. Mark Sanford proposed a tax hike Wednesday that would raise the cost of cigarettes by 30 cents per pack and generate $107 million in revenue that would be used to pay for cuts in business and personal income taxes.

The governor floated the plan in a preview of his executive budget, saying it would improve the state's economic health and individuals' physical health.

At 7 cents per pack, South Carolina has the lowest cigarette tax in the nation and is below the national average of 92 cents. State lawmakers have turned away cigarette tax hikes that would've spent the additional revenue on Medicaid and a health insurance fund for small businesses and families.

Carol Reeves, president of the South Carolina Tobacco Collaborative, said she supports Sanford's proposed tax hike but would like to see an increase of 93 cents to make the tax-per-pack an even dollar.

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She would also like to see the revenue spent on programs to help smokers quit and keep children from starting, along with health care for uninsured and underinsured people who may be suffering from asthma, emphysema and pulmonary disease.

"We've let the tobacco industry run rampant in this state," she said, "and we're paying the price."

Sanford warned that he would not accept any cigarette tax hike without a corresponding tax decrease.

Proposals last legislative session that would've increased cigarette taxes by 32 or 40 cents were defeated in the House Ways and Means Committee.