Taking a smoke could cost you more

COLUMBIA -- Cigarette taxes would increase by at least 30 cents under bills a House subcommittee approved Thursday, but the legislation still faces long odds in a tobacco producing state like South Carolina.

One bill raises the tax to 39 cents a pack, up from the nation's lowest at 7 cents, and uses the money to expand Medicaid programs for children and make health insurance available to low-income workers.

The second raises the tax by 30 cents and allows the Legislature to later decide how to spend the money. That proposal comes with a corresponding reduction in state income taxes, similar to what Gov. Mark Sanford pushed in 2003.

"This is the first time it has gotten out of a subcommittee," said Rep. Rex Rice, who has pushed cigarette tax increase legislation for years.

Rice, R-Easley, favored raising the cigarette tax by 32 cents last week during the budget debate, but that proposal failed with a 58-53 vote. Efforts to link an increase to lower income taxes also failed.

Rice said the increase would curb smoking and "help the health of citizens in South Carolina."

Renee Martin, executive director of the South Carolina Tobacco Collaborative, said the "higher the tax, the more lives saved." Her group wants the tax raised in line with the national average of 92 cents.

Rep. Liston Barfield, R-Conway, doubted the increase would curb smoking and said he's concerned the habit will hit the pocketbooks of the lower-income residents.

Tobacco company lobbyist Fred Allen said the average income of smokers in South Carolina is $28,000.

Rep. Ralph Davenport, R-Boiling Springs, asked Allen about the health-care costs smokers place on taxpayers.

Allen said a correlation hasn't been shown between low-income smokers and the tax burden from programs such as Medicaid. "Not every one of those lower-income taxpayers becomes a cost to a state-funded system," Allen said.

"I look at it as a benefit to those folks," Rep. Paul Agnew, D-Abbeville, said of his 32-cent increase plan.

He said they would benefit from more affordable health insurance and their children likely would be eligible for expanded Medicaid benefits.

"Right now there are so many uninsured people who could avail themselves to this plan," Agnew said.