Fiscal Conservatism: Up In Smoke

cigarette

By FITSNews ||  Led by Speaker Bobby Harrell (RINO-Charleston), the “Republican” controlled South Carolina House of Representatives voted on Wednesday to raise the state’s cigarette tax by 30 cents – with no corresponding decrease.  Lawmakers estimate that this tax hike will put an estimated $88 million a year into the state’s $21.1 billion budget – money which would immediately be cannibalized by annual Medicaid funding increases.

South Carolina spends billions of dollars each year on its fragmented, inefficient health care delivery system.  And with Medicaid services covering approximately 25 percent of the state’s population, you can see how that sort of waste quickly adds up.  Also, the cost of the program is also constantly increasing, with last year’s Medicaid growth rate (which occurred during the worst recession in eight decades, mind you) clocking in at around 8 percent.

So … has this massive increase in government produced a healthier state?

Of course not.

According to a recent report by the Trust for America’s Health, South Carolina ranks fifth in the nation in obesity, eighth in diabetes and seventh in infant mortality – despite ranking nineteenth in the nation in per capita health care funding.

Amazing, huh?  In good times and bad times, taxpayers are forced to pick up an ever-escalating tab for a consistently unacceptable results.  Sound familiar?  And let’s not forget the rampant fraud in the system, which cost taxpayer tens of millions each year.

Nonetheless, Speaker Harrell has been pushing a cigarette tax hike for years, arguing that South Carolina should raise the tax because it’s disproportionately low compared to our other states – and other high South Carolina taxes.

“I want to (have) the lowest taxes on everything,” S.C. Rep. Joey Millwood told The State newspaper, which has been fawning in its pro-tax “coverage” for years.

We agree with Millwood.

Raise the tax if you want, fine … but not like this.  Not without a corresponding decrease, not without eligibility reform, and not without a top-to-bottom overhaul of our state’s splintered health care system.

Incidentally, state lawmakers had a chance to make some real strides on smoking cessation back in 2000 – when cigarette companies dumped $912 million into the state’s coffers as part of a national tobacco settlement.  South Carolina could have had $2.5 billion over a period of 25 years, but lawmakers were (surprise) greedy and took the lump sum.

Not surprisingly, a recent report highlighting this settlement ranked South Carolina last in the nation in its smoking cessation efforts.

Also of interest is the fact that thirty-three “Republican” House members signed a no new taxes pledge.

It’ll be interesting to see which ones broke their word …

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Comments

  1. By They call me Mr. Sinister March 18, 2010 at 9:27 am

    Fits-just wait till they raise the taxes on alcohol sales, it’s coming! Follow that up with internet sales/usage tax, and most likely some kind of green tax on bottles and cans. You have to wonder if the 2% sales tax on food doesn’t fade away to return to the 8% we use to pay. Or allow me to take that sceanrio one step further, with the arguement to decrease obesity, a higher tax on food, say 10%, and an even higher tax on foods that tend to led to obesity. It does give new meaning to the old adage,of nickel and dimeing us to death…teg

  2. By Cooter Brown March 18, 2010 at 9:58 am

    Grow yer own tobaccie an’ mak’ yer own licker– problem solved! We gots t’ find as manie ways t’ avoid bein’ taxed as dey can cum up with way t’ tax us. Dis is wahr! Cigerette iz jest a convenient front because dey iz currentlie unpopular.

  3. By No Name March 18, 2010 at 10:35 am

    This group of legislators must raise huge sums of money while trying to stay away from the “Tax raise” label which is just south of “Baby killer”
    label……as a bad zone.

    All the county GOP leaders in this State have a big problem of basic identity to deal with. Luckily they have the Obama Federal crisis to shift awareness….but eventually this Depression will expose all the crony bull shit that keeps this State together and that ran this State.

    But when the tax money stops and you can not pay your cousins…. everyone gets cranky.

    Alchohol will be next and then every other margin fee that does not strike at a defined voting block. But it will not rememdy.

    Wake up all you newspaper staffers who read this site…..write something true before you all get laid off.

    Every GOP idiot that voted for the Golf tax should be run right out of town.

  4. By Jack March 18, 2010 at 10:43 am

    There is a way to stop the foolishness. Take away the legislator’s ability to game the tax code by targeted tax increases, and you take away the lobbyists power to boost campaign coffers. That way is the SC FairTax. Details will be available soon. As they say, tune in at 11 for details!

  5. By Catherine March 18, 2010 at 11:17 am

    Fits, Don’t you feel like beating your head against a wall? You report this disheartening and infuriating news day after day and year after year, and nothing ever changes. Seriously, just reading it makes me want to move away, or take a semi-automatic weapon to the statehouse. I really don’t see how, or why, you do it. One bright spot is crazy Cooter Brown… love that guy!

  6. By cfd007 March 18, 2010 at 5:23 pm

    Other states have done this before and after a couple of years ended up with a major shortfall when people started quitting and had to pull from their general fund.Then they raised them again. It’s a never ending cycle. Obama has already raised the cig tax by 150% and now this. Did anyone see Amendment 83 which would let the budget be looked at for 72 hours before having to vote on it? Look at the names that voted yea to table the amendment, that will show you who needs replaced.

  7. By A Grant March 18, 2010 at 6:44 pm

    As a smoker, Sic is arguing in his self-interest. Today, health-related costs paid by the state related to smoking cost taxpayers about five dollars per pack sold. That means smokers are being subsidized by all taxpayers. Nobody is arguing for a ban on smoking, but smokers should be willing to bear more of the cost of their addiction. A dollar a pack is a start. But anyone who argues that increasing the cigarette tax is unfair is simply showing ignorance of the budget and the costs. Yes, let’s lower property taxes and income taxes, but don’t make these phony arguments that an offset is needed if cigarette taxes are raised. This state has suffered too much ignorance, and Sic’s arguments simply perpetuate the ignorance.

  8. By JR March 18, 2010 at 7:53 pm

    A good conservative knows that cigarette smokers are a burden on all taxpayers. They consume more healthcare dollars than non smokers and that translates to higher medicare/caid costs which means higher taxes on everyone. You want to smoke? GO for it. But don’t stick me with your higher health care costs. It is your right to smoke, but it is not your right to reach into my pocket and take my hard earned dollars to pay for your home oxygen, your lung lobectomy, your aortofemoral bypass, or your open heart sugery that is a direct consequence of smoking behaviors. Free society???? Only for those who live off the labors of others.

  9. By baker March 19, 2010 at 12:39 am

    So, Catherine wants to maybe move away……but doesn’t almost every other state already have a much higher cig tax than SC?

    Where should Catherine move?

  10. By baker March 19, 2010 at 12:54 am

    Will says: “According to a recent report by the Trust for America’s Health, South Carolina ranks fifth in the nation in obesity, eighth in diabetes and seventh in infant mortality – despite ranking nineteenth in the nation in per capita health care funding.”

    It’s always wise to check the facts when propagandists are doing their thing. Here’s what the report actually says about funding:

    1. SC ranks 19th in funding from one federal pot of money (HRSA)
    2. SC ranks 24th in funding from the CDC.
    3. SC ranks 31st in funding by the state itself.

    So, it appears that SC is below average in terms of funding health care for its citizens — and this is the area where the cigarette tax would be applied, I figure.

    http://healthyamericans.org/states/?stateid=SC

  11. By Darth March 19, 2010 at 11:58 am

    Let me see, if we upped the taxes on bongs and rolling papers, would we increase revenues or drive off Olympic swimmers and out of state college students?

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