December 3, 2008 9:23 AM
Save the state budget - start smoking
Colorado's tax increase on cigarettes and other tobacco products has had mixed results, reports Ed Sealover.
Adult smoking rates have decreased in two of the past three years and teen smoking already is below the 2010 goal set by a national coalition of health care professionals.But because increasing funding for anti-smoking programs - coupled with the higher tax and a growing social stigma attached to smoking - is reducing the number of Colorado smokers, the amount of money coming in is falling, too.
Amendment 35 brought in $169.6 million in its first year. That number has fallen two straight years, and budget forecasts show continued declines that could leave program recipients with $135.5 million in fiscal year 2011-12 - a 20 percent drop before inflation is factored in.
Legislators and authors of the law say they anticipated this erosion and feel safe in having allocated most of the new money in yearly grants that can be reduced without great upheaval. But 46 percent of revenues go to increasing the number of low-income Coloradans on public insurance programs like Medicaid and Children's Health Plan - a part of the budget that can't be chopped without inflicting harm.
"That's a problem if the funds aren't there, because you can't provide services if you don't have money. In the end, if we lose enough money, less kids will get services," said Sen. Betty Boyd, a Lakewood Democrat who sponsored the bill implementing the tax increase.
The reported decrease in smoking may be skewed by smuggling to avoid higher cigarette taxes.
According to a study released Tuesday, cigarette smuggling nationwide is on the rise.The study, by the free-market Mackinac Center for Public Policy of Michigan, estimates 18.1 percent of cigarettes consumed in Colorado in 2006 were smuggled into the state.
That definition includes cigarettes purchased at a lower tax rate across state borders, cigarettes bought on the Internet and black-market cigarettes sold by people without licenses to do so.
Smuggling numbers rise as cigarette taxes go up, author Mi chael LaFaive said. Colorado, for example, had an average smuggling rate of just 5.9 percent from 1990 to 2006 but saw numbers spike in recent years.
"If (states) don't factor smuggling into their revenue forecasts, they will almost always be wrong about the amount of revenue they think they can raise," LaFaive said.
December 3, 2008
11:21 AM
gr8fuldude writes:
Of all the vices I've quit, cigs were the hardest. I have a patio off my office, and I used to LOVE to go out on summer mornings between 6:30 and 7 and have my coffee and Marlboro while reading the paper. Since quitting 2.25 years ago, the coffee alone is not quite the same.
That said, smoking is becoming more socially unacceptable and fewer people are doing it. States are going to have to figure out how to deal with the budgetary shortfalls that will inevitably follow.
Now, let's bring on the peeing and whining from the "I demand to smoke in bars and restaurants because they're 'private property'" crowd of infants.
December 3, 2008
1:21 PM
Shaggy writes:
One thing Liberals have no concept about is Taxes.
One way to put a Company or product out of existence is to tax the hell out of it.
Just like Barry said, Coal Companies can build all they want but it will all be a waste of money because he will tax them so high they will be put out of buisiness.
Next in line to be Taxed out of existence will be us, the people.
Time will tell if the people will be able to survive a Barry Presidency.
December 3, 2008
1:47 PM
Brownsville Station writes:
How you doin' out there? Y'ever seem to have one of those days
where it just seems like everybody's gettin' on your case, from
your teacher all the way down to your best girlfriend? Well,
y'know, I used to have 'em just about all the time. But I found
a way to get out of 'em. Let me tell you about it!
(Sung)
Sitting in the classroom Thinking it's a drag
Listening to the teacher rap Just ain't my bag
The noon bells ring You know that's my cue
I'm gonna meet the boys On floor number two!
Smokin' in the boys' room
Smokin' in the boys' room
Now, teacher, don't you fill me up with your rules
But everybody knows that smokin' ain't allowed in school.
A-checkin' out the halls Makin' sure the coast is clear
Lookin' in the stalls No, there ain't nobody here
Oh, my buddy Fang, and me and Paul
To get caught would surely be the death of us all
Smokin' in the boys' room
Smokin' in the boys' room
Now, teacher, don't you fill me up with your rules
But everybody knows that smokin' ain't allowed in school.
All right!
Oh, put me to work In the school book store
Check out counter And I got bored
Teacher was lookin' For me all around
Two hours later You know where I was found
Smokin' in the boys' room (Yes indeed, I was)
Smokin' in the boys' room
Now, teacher, don't you fill me up with your rules
But everybody knows that smokin' ain't allowed in school.
One mo'!
Smokin' in the boys' room
Oh, smokin' in the boys' room
Now, teacher, I am fully aware of the rules
But everybody knows that smokin' ain't allowed in school!