Minnesota poll shows support for tax hikes on cigarettes, wealthy

A new poll of Minnesotans found broad support for the tax hikes on wealthy residents and cigarette smokers that Gov. Mark Dayton and the Democratic Legislature approved last month. The Star Tribune's Minnesota Poll, published Tuesday, showed that 58 percent of respondents supported the income tax increase on roughly the top 2 percent of income earners. Even more respondents, 64 percent, backed the $1.60 per pack hike in the cigarette tax. The income tax was opposed by 36 percent of respondents, while 32 percent opposed the higher cigarette tax. The poll surveyed 800 adults by phone from June 11 to June 13, and had an error margin of plus or minus 3.5 percentage points. The strong backing for both measures may reflect that they affect only small fractions of the greater population. Republicans in the House and Senate fought the tax increases, which were the two chief components of a tax bill that is projected to raise $2.1 billion in new revenue over the next two years. Republicans argued the additional tax money was not needed and would harm the state's economy. House Speaker Paul Thissen, a Minneapolis Democrat, said the poll showed that residents understood the need to raise more revenue in order to spend it on education and job creation, "and that we found a fair and acceptable way to do that." House Minority Leader Kurt Daudt, R-Crown, said the poll reflects that the tax hikes are narrowly targeted. But he argued that they "frankly will hurt Minnesota's economy and hurt hardworking Minnesota families." Bruce Jawer, a poll respondent from Rochester, told the Star Tribune that he backed the cigarette tax increase because health problems caused by smoking cost the state money. And he backed the income-tax hike even though he said he may fall into the "upper-income" tax category at times. "Folks who make more money have a duty to contribute more to the welfare of the country and the state," said Jawer, an educational administrator for Mayo Clinic. "History shows that when things get too out of balance between the rich and the poor, it leads to instability." But Tom Penn, a small business owner from Excelsior, said the income tax hikes could hurt enterprises like his, in which business income is taxed as personal income. "If you're raising taxes, you're preventing us from reinvesting in the business," he said. Penn said he doesn't necessarily oppose cigarette tax hikes, but argued that similar items such as liquor should have been subject to the same increase. The Legislature and Dayton set a new tax rate of 9.85 percent on income above $250,000 for couples and above $150,000 for individuals, a 2 percent increase over the current rate. Income below those levels will continue to be taxed at existing rates. The $1.60 cigarette tax increase will be added to the state's current per-pack tax of $1.23. The Minnesota Department of Health estimates about 16 percent of Minnesota adults are smokers.

Bethel approves tobacco tax

Soon it will be more expensive to be a tobacco user in Bethel. At the last meeting of the Bethel City Council passed ordinance that would raise taxes on all tobacco products sold in the city. Resolution up the price of cigarettes by $ 2.21 per pack and raise the price of other tobacco products by 45%. More than a dozen people showed up to the Council to comment on the tax and most of them were in his favor. Brian Knutson, a local paramedic, said tobacco products are "more deaths than deaths from HIV, illegal drug use, alcohol use, vehicle injuries, suicides and murders combined."

Citizens who spoke before the council praised the possibilities are ultimately causes people to quit smoking forever. They also said that it could detour young people from picking up the tobacco in the first place, then, Doug Boyer, the site administrator at a boarding school Bethel Alternative, said that he sees every day. "Close to 45-50% of my students have seen suppliers to the hospital to try to kick this tobacco," says Boyer. Although in the minority, not all in the gallery thought the tax was a good idea. "One part of the population was in favor of taxation to another segment of citizens, because the behavior they do not like, again complacent. This hypocrisy. And all this in order to make people feel good when you create the class struggle," said John Furlong. City Council reiterated gallery, with the majority of council members in favor of the tax, and some were against. Ordinance passed 4-2. Council members Rick Robb and Mark Springer had a special vote. "This ruling could potentially have very negative unintended consequences," said Robb. He said that the tax may cause parents to spend extra money on tobacco, which, as a rule, go for food for their children. He also says that retailers may be tempted to keep the price of tobacco on its current course and pass the increase the tax on to consumers through higher prices for other products. Bethel Mayor Joe Klejka said he sees retailers shifting responsibility to the non-smokers and sees benefit in the tax. "I do not want to kill myself for less cost, I want to kill myself slowly value of degrees higher," Klejka said. The financial aspect of the decision has not yet been developed. City Finance Director asked for sixty days to get everything in order before the tax officially implemented. Some on the council would like to see all the revenues from the tax to go to the city's youth programs, while others would like to see that money put into the general fund of the city.

MBC supports tax reform on alcohol, tobacco

Makati Business Club (IBC) welcomes the initiative to reform the excise tax on tobacco and alcohol products, which allow the government to optimize their revenue potential and create a strong barrier to excessive use of tobacco and alcohol. In a statement, MBC announced on Wednesday that they support the restructuring of the excise tax on the multilevel structure of the unitary structure of the excise tax on tobacco and alcohol. This will effectively raise equity through the cigarette and alcohol brands to promote market-based pricing in the industry and encourage the entry of legitimate competition. It also demonstrates its commitment to an open and fair competition and respect under international agreements. MBC also said that he favored the elimination of the classification price freeze so the government has the right to charge a competitive rate of excise duty on tobacco and alcohol products. "The current system undermines the tax base, the cost of the Philippine government a significant amount of lost revenue. To address this loophole, we urge lawmakers to increase the excise tax and the burden of tobacco and alcohol products, taking into account inflation in the year, to adequately reflect the negative externalities of consumption of these products" , a business group added. Furthermore, MBC joins the medical community, expressing concern over the increasing number of smokers among the youth of the country, the majority of preventable deaths and disability from smoking-related diseases, as well as the fact that in the Philippines, the 15th-largest market for tobacco in the world with one of the lowest tobacco taxes. He said that the shortcomings of the tax structure governing tobacco and alcohol products allowed the abuse of their consumption, but failed to curb the growth of new smokers and drinkers, particularly among young people and the poor. MBC also said that a society which bears the burden, as evidenced by the annual increase in economic and productivity losses associated with excessive alcohol consumption and smoking. In response to the concerns of some sectors ", resulting in higher prices for tobacco and alcohol products would stimulate the black market, MBC, and urged the government to further strengthen its campaign against smuggling and trafficking in illicit goods. "We firmly believe that strict compliance with customs laws and regulations, as well as effective fight against corruption in the customs and border controls are still key elements in winning the war against smuggling. Fear does work, but it should not interfere with the proper administration of government stakes excise tax, should not that be an excuse to nurture anti-competitive policies and practices, "the business group said. MBC encourages the Government to use part of the additional revenue from excise taxes for promotional and educational activities about the dangers of smoking and alcohol consumption, and allocate a significant part of his Filipino health programs. In addition, the Business Group encourages the Government to expand its technical and financial assistance to farmers Filipinos.