$2 per pack tobacco tax on fast track in California Legislature

A proposal to raise the tobacco tax by $2 per pack of cigarettes cleared its first two policy committees Wednesday, with Republicans unified in their opposition. Sen. Kevin De Leon (D-Los Angeles) proposed the tax, which would move California's tobacco taxes from 33rd-highest in the nation to fourth. The $1.5 billion raised each year would help pay for medical care for tobacco-related diseases, anti-tobacco education and enforcement of tobacco-related laws. DeLeon said the state currently spends $3.1 billion on medical costs involving tobacco-related diseases and health impacts. “Our goal is to ensure that taxpayers don’t foot the bill related to any industry,” De Leon said. The state currently charges 87 cents in taxes on each pack of 20 cigarettes, with money going to healthcare programs, including an anti-smoking campaign. Supporters also hope the higher tax will discourage some people from smoking. The vote of the Senate Governance and Finance Committee was 4-2, with Republicans including Sen. Stephen Knight of Palmdale opposed. “Why wouldn’t we just obliterate smoking by raising it [the tax] $25?” Knight asked sarcastically. “Is it our job to tax people into a good decision?” SB 768 goes to the Senate Health Committee this afternoon so it can meet a looming deadline for committee action on bills. [Bill Dombrowski, president of the California Retailers Assn., opposed the measure, telling the health panel that the tax will cost jobs, promote black-market activity and hit the wallets of some people more than others. [“Raising taxes will unfairly burden low-income earners,” he told the Health Committee. [De Leon said the same goes for health. “What is truly regressive is the disproportionate impact smoking has on low-income and minority communities.” [Some supporters said the money can help with the expansion of MediCal, although De Leon said the bill does not yet address that issue.] Source: By Patrick McGreevy http://www.latimes.com/news/local/political/la-me-pc-tobacco-tax-20130508,0,7639018.story

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.