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Tobacco News and Interesting Information

Category:
  Tax
Region:
  USA

BESHEAR PROPOSES STEEP HIKE TO KY. CIGARETTE TAX
Source: kypost.com
Date: 23-Jan-2009


Gov. Steve Beshear said Friday it's time for Kentucky to tackle its chronic health problems, as the Democrat continues his push for a sharp hike in the state's cigarette tax.

A new report ranking Kentucky with the nation's highest smoking-related death rate gave Beshear more ammunition in touting higher tobacco taxes as part of a plan to eliminate the state's massive budget deficit.

"It is time that we make a difference for our people in their health," Beshear said in a speech to the Kentucky Press Association. "By far the quickest way of doing that is by substantially raising our cigarette tax and other tobacco taxes."

Kentucky faces a projected $456 million revenue shortfall in the current fiscal year ending June 30. Lawmakers are scrambling to hammer out a plan aimed at closing the project budget hole.

Beshear has proposed offsetting the projected deficit by raising the state's cigarette tax 70 cents per pack, to a total of $1, doubling taxes on other tobacco and cutting many government agency budgets by 4 percent.

The governor tried to enlist the group of newspaper publishers and editors to his cause, asking them to step up and support his effort to raise the cigarette tax.

Kentucky remains the nation's top producer of burley tobacco, an ingredient in cigarettes.

The number of Kentucky tobacco farmers has dropped sharply in the years since the tobacco buyout ended the federal tobacco program, which for decades set price and production controls on U.S. leaf.

In his speech, Beshear bemoaned the state's lofty ranking in smoking, obesity and chronic diseases.

"We in this state have one of the most unhealthy populations anywhere in the United States," he said.

Kentucky leads the nation in adult smoking rates and lung cancer deaths, according to the U.S. Centers for Disease Control and Prevention. This week, the CDC said Kentucky had the highest smoking-related death rate - about 371 deaths out of every 100,000 adults age 35 and older.

Senate President David Williams, R-Burkesville, recently called for a statewide smoking ban as a way to improve Kentucky's overall health. Williams suggested expanding smoking restrictions in public buildings - including restaurants, bars and government buildings - already in place in some of Kentucky's largest cities.

Beshear expressed confidence Friday in reaching agreement with lawmakers on a plan to erase the budget deficit. "We're making good progress so far, working as a team on trying to figure a solution," he said.

The economic stimulus package being crafted by Congress is another potential source of money to help Kentucky with its financial woes, the governor said. Beshear said he has instructed his staff to aggressively seek the federal money and promised, "We're going to be there to get our share."

Beshear warned that Kentucky's fiscal woes could be prolonged, with some experts predicting next year's budget situation could be even more dire as the national economy reels from a recession.

"We're in such unchartered waters with our economy right now that we're going to have to be flexible ... in trying to deal with this as best we can," he said.

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