Reflector Letter

Link to full letter: Cigarette tax makes sense

In response to Melissa Harper's column, "Smoking tax is deceptive," I am writing on behalf of the Communities for a Clean Bill of Health (CCBH).

It seems that Harper agrees with CCBH on the need to increase the cigarette tax in Mississippi. At 18 cents, the tax ranks 49th in the nation and has not been raised since 1985. Each year, Mississippians spend $719 million on healthcare expenditures related to tobacco use while bringing in only $43 million in cigarette tax revenue. A $1.00 cigarette tax increase would result in $180 million in new revenue for the state and lead to 43,000 kids alive today to never begin smoking and 23,400 adults to quit.

It is only at $1.00 cigarette tax increase that we reach the maximum health and financial benefits of a cigarette tax. For every 10 percent increase in the price of cigarettes there is a 3 to 5 percent reduction in overall cigarette consumption. The average price of cigarettes in Mississippi is $3.55. If the excise tax was increased by only 25 cents that would increase the average price to $3.80 - only a 7% increase. That would have ZERO effect on consumption!

While our coalition is a single issue one - advocating for a cigarette tax increase - we did see the cigarette tax increase/grocery tax cut as a viable option to reduce smoking and lower the burden on hard working Mississippian's who have to buy groceries. Harper's concerns about the cigarette tax increase/grocery tax cut were addressed by legislators and studied by the John C. Stennis Institute of Government at Mississippi State University - Tobacco and Food Taxation Policy Options in Mississippi.

First, in the proposed legislation, lawmakers increase the current grocery sales tax diversion from 18.5% to 37%. This assures that the legislation would have no adverse effects on Mississippi cities and towns. However, the study found that Mississippi municipalities would make an additional $18-$36 million in new revenue because of the grocery tax cut as a result taxpayers spending their savings on additional food or other taxable goods.

Great Bobby Harrison Article on Taxes

Tax reform high on governor's agenda for second term
Northeast Mississippi Daily Journal - Tupelo,MS,

"The beauty of the lieutenant governor's proposal is that it brought both taxes in line with the rest of the country," Bryan said.Barbour blocked passage of the proposal during both sessions. Some said he opposed the higher cigarette tax because the Washington, D.C., lobbying firm he helped build - and from which he still receives revenue - represents cigarette companies.

But Barbour has said he would not rule out an increase in the cigarette tax as part of larger reform efforts. He has indicated, though, on more than one occasion that the grocery tax is not the tax he would favor cutting.

Still, proponents of the tax-swap plan most likely will have key positions in the Legislature, regardless of what happens in the speaker's race.Sen. Alan Nunnelee, R-Tupelo, who is expected to have a position of influence in a Bryant administration, has been a consistent supporter of the tax swap and said he would continue to do so. He said he believes as more people become educated on the issue, support for reducing the grocery tax and increasing the cigarette tax will grow.

Vote on the Clarion Ledger's online poll

Click on the link to vote: Should the new Legislature Increase the tax on tobacco?

Legislative Turnover and Senate Leadership

The new Legislature will see 19 new House members sworn into a body of 122 members, meaning just under 16% of the body will be freshmen.Down the hall in the Senate, though, 14 new Senators will be sworn to sit in a chamber made up of 52 members. That's a 27% turnover of the entire State Senate, which is a dramatic change.

Besides orienting the new members that will be settling in, the Senate will be adjusting to the loss of an unusual number of quite senior and quite capable leaders from its midst. Gone are Senators Travis Little (retired), Billy Thames (retired), Mike Chaney (elected Insurance Commissioner), Lynn Posey (elected Public Service Commissioner), Charlie Ross (defeated in primary for Lt. Governor), Tommy Robertson (defeated in primary) and Ralph Doxey (defeated in general election), all of whom held positions of significant leadership and wielded significant influence in the last Senate.And while most eyes are on "Speaker politics" in the House, just as big an issue is "Chairman politics" in the Senate, as Lt. Governor Phil Bryant develops his leadership team in the absence of so many old hands.

Watch for Senators Alan Nunnelee, Tom King, Perry Lee and Gary Jackson, all early Bryant supporters, to figure very prominently in the new Senate. Former Ross supporters Terry Brown and Billy Hewes are also likely key players. And Jack Gordon, long-time Democrat chairman of Appropriations, will never be far from the action.

Don’t let anyone tell you a vote doesn’t count!

Democrat Brandon Jones has been declared the winner — by 11 votes — of Tuesday’s election in the open House District 111 seat. Republican Tim Lee had a two-vote lead Tuesday night, but Jones passed him after officials counted affidavit ballots. -- Associated Press

Jones, a Pascagoula lawyer, replaces Rep. Carmel Wells-Smith, R-Pascagoula. She chose not to seek re-election after 16 years in elected office. She supported Lee.

Some Early Prominent State Senate Results

State Senate - District 2 - General
25 of 46 Precincts Reporting - 54%


Stone, Bill
Dem
2,842
59%

Doxey, Ralph (i)
GOP
2,007
41%

State Senate - District 18 - General
24 of 58 Precincts Reporting - 41%

Ward, Giles
GOP
3,819
51%

Williamson, Gloria (i)
Dem
3,736
49%


State Senate - District 29 - General
7 of 38 Precincts Reporting - 18%

Blount, David
Dem
1,043
70%

White, Richard (i)
GOP
454
30%


State Senate - District 41 - General
15 of 54 Precincts Reporting - 28%

Fillingane, Joey (i)
GOP
1,841
56%
Buffington, Gerald
Dem
1,374
42%
Thornton, Vince
CST
48
1%

Election Coverage

This Times article details some of the elections going on across the country today, including the gubernatorial race in Mississippi.

Spending Trumps Social Issues at Ballot Box This Time New York Times - United States In Oregon, tobacco companies have spent more than $10 million to block a measure that would increase cigarette taxes by 84.5 cents a pack. ...


There is also a referendum on the ballot in Oregon that if approved would raise the state's cigarette tax to $2.00.

The spending by both sides has made the ballot measure the most expensive in the state’s history.

Tobacco companies have waged equally aggressive fights in recent years in California and Missouri to defeat similar measures, though one such measure passed last year in Arizona despite efforts by the companies.

The revenue from the cigarette tax increase would pay for expanded healthcare for uninsured children.

Mike Moore at the CCBH Luncheon

Mississippi's former Attorney General, Mike Moore introducing Matt Myers.

Matt Myers at the CCBH Luncheon

Campaign for Tobacco Free Kids President and Founder Matthew Myers speaking to a packed house at the CCBH fall luncheon.

CCBH Fall Luncheon a Huge Success!!!!

The Communities for a Clean Bill of Health held its annual fall luncheon on October 30 at the UMC Conference Center in Jackson. The keynote speaker, Campaign for Tobacco Free Kids president Matthew Myers, gave a comprehensive presentation on why Mississippi should increase its cigarette tax by $1.00. Increasing the Cigarette Tax by $1.00 in Mississippi is a "WIN WIN WIN!" (Myers Presentation)

An audio link to MPB coverage of the luncheon: Listen

Individuals in the overflow crowd at the luncheon left with an enhanced confidence and more passion towards encouraging their constituents and those in their networks to support increasing the cigarette tax by $1.00. The Luncheon kicked off CCBH's efforts to raise the cigarette tax by $1.00 during the 2008 legislative session. The event was also an opportunity to thank the advocates, healthcare professionals, supporters, and legislators whom have worked diligently to increase the cigarette tax by $1.00 in Mississippi over the past year.

An increase of the cigarette tax by $1.00 would result in:

· $165.3 million in new tobacco tax revenues
· $9 million in 5-year savings from reducing smoking during pregnancy
· $13.7 million in 5-year savings from reduced heart attacks and strokes
· $957.8 million in long-term healthcare savings from smokers averted

Other guest speakers included Oleta Fitzgerald, Children's Defense Fund and former Mississippi Attorney General Mike Moore.

Cigarette Tax looms large in election.

The cigarette tax is the most prominent issue in the pinebelt region legislative elections:

Seven incumbents ready to face challengers in area racesHattiesburg American - Hattiesburg,MS,USA"The cigarette tax, if we had a referendum it would have passed 73 to 74 percent. In its final stages (the grocery tax reduction) really wasn't going to ...

Why Increase the Cigarette Tax by $1.00 ?

The Communities for a Clean Bill of Health (CCBH); a collective, independent voice of public, private, professional, and nonprofit organizations, service and citizen groups, and businesses; is working to promote a $1.00 per pack cigarette tax increase in Mississippi. The coalition is made up of over 40 national, state and local organizations, including The American Cancer Society, The American Lung Association, The American Heart Association, AARP, the Children’s Defense Fund, Mississippi Alliance for School Health, and Mississippi Health Advocacy Program

Why increase the cigarette tax by $1.00? It is only at a $1.00 increase that we reach the maximum health and financial benefits of a cigarette tax. Numerous Econometric studies have found that for every 10% increase in the price of cigarettes there is a 3% to 5% reduction in overall cigarette consumption. The average price of cigarettes in Mississippi is $3.55. If the excise tax was increased by only 25 cents that would increase the average price to $3.80—only a 7% increase. That would have zero affect on consumption.

If the excise tax was increase by $1.00 it would result in a 20% reduction in youth smoking and 23,400 adults would quit smoking. The state would also witness $971 million in long-term healthcare savings while producing $184 million in new revenue from the tax.

For every pack of cigarettes sold in Mississippi the state spends $8.37 on smoking related costs while bringing in only 41 cents in excise and sales taxes. Healthcare for smokers is being subsidized by all other hardworking Mississippians. The State Division of Medicaid alone is spending $264 million each year on smoking related healthcare costs.

The effects of smoking, and other forms of chronic illness, hinder Mississippi’s potential in significant ways. Mississippi has long been at, or near, the bottom of every health care statistic available. The situation is so dire, that former State Health Officer, Dr. Ed Thompson coined the phrase “worst firsts” to describe the fact that Mississippi leads the country in prevalence of diabetes, heart disease death rate, lack of breast cancer screenings in women over the age of 50, population served by primary care physicians, and age-adjusted death rate.


Without exception, each state that has significantly increased its cigarette tax has experienced substantial increases in revenue and reduced smoking. The revenue from the tax increases have helped states balance budgets and helped to fund essential services like health care, education and tobacco prevention programs.