Cigarette Tax Complex Issue to Resolve
Subcommittee Continues to Work with Extended Deadline
Columbia, SC – The Senate Finance Special Subcommittee on Cigarette Tax
(H.3567) met for its sixth time today. During the meeting subcommittee members heard testimony from a representative of the Tobacco Control Program with the Department of Health and Environmental Control.
The subcommittee has heard testimony from at least 29 different individuals and organizations, poured over similar legislation from other states, and reviewed a variety of proposals on everything from implementation to the use of revenue.
“Research shows that cigarette taxes in 43 states have been raised at least 75 times in the last eight years,” says Subcommittee Chairman Senator Thomas Alexander (R-Oconee/Pickens).“Just as important as the use of any revenue for healthcare is the overall impact we can have on continuing to decrease youth smoking.”
Beyond the core question facing the subcommittee, members must also address implementation of any law change, what methods will be used to transition into any new proposed increase, and how any new revenue could be used.
One idea gaining support among subcommittee members concerning the use of new revenue is the development of a Healthcare Trust Fund. “The trust fund, which will need to be self-contained with funds generated by the cigarette tax, could be used to begin addressing the medical costs for the state’s uninsured,” says Senator Alexander.
The subcommittee has heard testimony from a variety of organizations with plans to expand uninsured coverage, most of which propose deriving funds from a cigarette tax increase. The subcommittee has yet to settle on any specific proposal.
“This is one of the hardest working committees I have seen in some time,” says Senate Finance Chairman Senator Hugh Leatherman (R-Florence). “I think what we are seeing is a subcommittee that is working to produce the best recommendation possible and I applaud their efforts. I have every confidence in Senator Alexander and the other members of the subcommittee, and I think we should allow them the time they need to properly answer all of the questions before them.”
The subcommittee recently asked the Senate for an extension to the March 5 deadline, which would allow them to continue working toward a comprehensive resolution before making a recommendation.
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