Cigarette Tax Blog

A $1 Cigarette Tax Increase is the Solution to Medicaid’s Long-term Funding Problem

2008-05-28T15:10:00.000-07:00

The Communities for a Clean Bill of Health (CCBH) is disappointed that Governor Haley Barbour’s proposal for funding Mississippi’s Medicaid program does not include a cigarette tax increase. It is even more disappointing when you consider that a great majority of Mississippians and even a majority of legislators favor a $1 cigarette tax increase to fund Medicaid.

The Governor’s current proposal and the parliamentary rules of the special legislative session limit the ability of legislators to consider all available options to provide stabile funding for Medicaid. We call on the Governor to amend his proposal and allow for all funding options to be considered—including a $1 cigarette tax increase.

Since 2002, CCBH has advocated for the increase of Mississippi’s excise tax on cigarettes. The coalition is made up of more than 40 national, state and local organizations, including AARP, The American Cancer Society, The American Heart Association, The American Lung Association, Children’s Defense Fund, Mississippi Health Advocacy Program, and the Partnership for a Healthy Mississippi.

The Governor’s plan would essentially levy a “bed tax” on every non-Medicare hospital bed in the state. It makes more sense to tax a product that puts people in the hospital and costs the state millions than establishments that take care of the sick and ill.

Mississippi’s Medicaid program has a structural deficit that results in a $90-$100 million funding hole each year. A $1 cigarette tax increase is the solution to Medicaid’s long-term funding problem. The Stennis Institute of Government found that a $1.00 per pack cigarette tax increase would result in $174 million in new revenue. It would also prevent 46,100 kids alive today from ever becoming smokers—leading to over $1 billion in long-term health-care cost savings.

Smoking directly affects Medicaid’s budget. The Division of Medicaid alone spends $264 million on smoking related healthcare costs each year while the state’s excise tax on cigarettes only generates $46.9 million annually.

Sustained Revenue

2008-05-21T08:58:00.000-07:00

The featured graph, presenting data from Massachusetts, shows how state cigarette tax revenues do not decline sharply in the years following a significant cigarette tax increase.

CCBH Addendum to the Governor's Tax Study Commission

2008-05-21T08:56:00.001-07:00

A $1 CIGARETTE TAX INCREASE IS A HEALTHY INVESTMENT IN MISSISSIPPI’S FUTURE

Throughout your deliberations this summer the Communities for a Clean Bill of Health (CCBH) strongly encourages you to consider Mississippi’s full income statement. The recommendations of this body should come as a result of measured counsel on not only state revenues but state expenditures as well.

As our remarks will entail, tax policy can have a direct effect on not only the economics but the health and wellbeing of Mississippians. Due to the encompassing nature of this study, CCBH believes this should be the first of several opportunities for public comments to this Commission. Also, all subsequent meetings, including those of the newly announce subcommittees, should be open to the public.

The Governor’s Tax Study Commission is a noble undertaking and the service of those on this body is commendable. The recommendations you put forth should serve as an investment in Mississippi’s future. Any long-term investment in the state would be incomplete if it does not include policy aimed to improve the health and productivity of Mississippians. To that end, we recommend a $1 cigarette tax increase as the best option to ensure a health and financial impact that would move Mississippi forward.

Dr. Ed Thompson, State Health Officer, coined the phrase “worst firsts” to describe the fact that Mississippi leads the country in prevalence of diabetes, heart-disease death rate, population served by primary-care physicians and age-adjusted death rate.

Mississippi is also one of the worst in nation in terms of taxation on cigarettes. The state’s excise cigarette tax, 18 cents, has not been increased since 1985 and ranks 49th lowest in the nation. A $1 cigarette tax increase would provide both immediate revenue gains and a long-term health care investment because of the resulting reduction in youth and adult smoking.

Smoking declines produce enormous public and private sector savings that more than offset any state revenue reductions from fewer packs being sold. More specifically, smoking reductions among pregnant women and lower income households translate directly into reduced smoking-caused expenditures by the state’s Medicaid program.

Study after study— from the Centers for Disease Control and Prevention, the John C. Stennis Institute of Government, and even tobacco giant Phillip Morris – reveal that cigarette tax increases are the strongest way to reduce smoking, particularly among youth. It is only with a $1 increase that we reach the maximum health and financial benefits of a cigarette tax. Numerous studies have found that for every 10 percent increase in the price of cigarettes there is a 3 percent to 5 percent reduction in overall cigarette consumption.

A $1 cigarette tax increase would result in:

Ø 46,100 kids alive today, who will never becoming smokers
Ø 26,600 adults who would quit smoking
Ø 21.4% reduction in youth smoking
Ø $174 million in additional revenue
Ø $1 billion in Long-term healthcare

Looking at revenue side of $1 cigarette tax increase alone, cannot begin to tell the entire story of the impact it would have on Mississippi or the costs the state incurs due to smoking. The state spends $719 million annually on tobacco related health care expenditures. The Division of Medicaid alone spends $264 million to treat tobacco related illnesses while the current cigarette excise tax only generated $46 million in revenue in 2007. The state is essentially providing millions of dollars in health care subsidies for smokers. Smoking costs everyday Mississippians:

Ø 4,700 tobacco-related deaths annually in Mississippi
Ø $8.37 in smoking caused costs per pack of cigarettes sold in Mississippi
Ø $564 per Mississippi household to treat tobacco-related disease
Ø $1.41 billion smoking caused productivity losses

Significant tobacco tax increases always produce substantial net new revenues that last. In every single instance where a state has passed a significant cigarette tax increase, the state has enjoyed a substantial, sustained increase to its state cigarette tax revenues. This occurs, despite significant declines in smoking rates and taxed pack sales, because the increased tax per pack brings in much more new revenue than is lost by the declines in the number of packs sold and taxed.

House Concurrent Resolution 68

2008-03-28T11:07:00.000-07:00

Rep. George Flaggs has put forth House Concurrent Resolution 68, which calls for the both the Senate and House to suspend deadline rules to consider HB 1013. The Medicaid Technical Amendment bill, which contained a $1 cigarette tax increase, died in the senate when it was not brought up for consideration by Senator Hob Bryant, chair the Senate Public Health & Welfare and Senator Dean Kirby, Chair Senate Finance Committee before the March 18 deadline.

HC 68 urges the House and Senate to take up HB 1013 now and address the funding problem of a program that provides health coverage to a fifth of Mississippi's residents. Passage of the resolution to suspend the rules requires a 2/3rds vote.

HC 68 may be brought up by the full House of Representatives next week. Urge your representative and your senator to vote for the rules suspension so that the members of legislative both bodies are allowed to vote on this important issue.

You may remember that in last year's legislative session, an attempt in the state senate to suspend the rules to bring up legislation that would increase the cigarette tax by $1 fell a few votes short. A rule's suspension was needed after former Senator Finance Committee Chairman Tommy Robertson-at the urging of the governor- refused to allow the bill to be considered in committee. Robertson and several other senators who voted against the rules suspension are no longer in the senate. Robertson failed to be re-elected-due in large part to cigarette tax issue.

A $1 cigarette tax increase is a win, win for Mississippi. It would save lives and save money by leading to a reduction in youth smoking while supplying the state with a dedicated source to fund Medicaid.

Contact your Representative or Senator @ (601) 359-3770

HC 68

2008-03-26T09:18:00.000-07:00

Rep. George Flaggs has put forth House Concurrent Resolution 68. The resolution calls for the both the Senate and House to suspend the rules to consider HB 1013.

HB 1013 died in the senate when it was not brought up for consideration by the chairman of the Senate Public Health & Welfare and Finance Committees.

CALL THE CHAIRMEN

2008-03-14T09:56:00.000-07:00

TAKE ACTION THIS WEEKEND!!!

Tell Chairmen Hob Bryan and Dean Kirby to let your senator vote on

HB 1013

CALL PUBLIC HEALTH & WELFARE CHAIR
HOB BRYAN @ (662) 256-9989

CALL FINANCE CHAIR
DEAN KIRBY @ (601) 932-1966

Thank you for your calls to the Lt. Governor and your support of a $1 cigarette tax increase. Your calls to Phil Bryant are having an impact on the status of HB 1013. It is vital that these two chairmen here from you on the importance of your senator being allowed to vote on HB 1013.

HB 1013 is the Medicaid technical amendment bill. The $1 cigarette tax increase in the bill would provide a dedicated source of funding for Mississippi's Division of Medicaid. The secure funding source- the cigarette tax increase-is much needed as the program is faced with a grave deficit. Without review of the legislation, thousands of children and elderly could loose their health insurance.

Over 630,000 of Mississippi's most vulnerable, the elderly and children, are at risk of loosing their health coverage if an agreement is not reached on Medicaid. The only viable option for a dedicated source of revenue to support Medicaid is the $1 cigarette tax increase. Medicaid and the cigarette tax must be addressed this session before legislators go home. Health care is too important to be loss in the game of politics!

H.B. 1013 is currently before the Senate Public Health & Welfare and Finance Committees.

Call Bryan and Kirby and tell them to LET YOUR SENATOR VOTE!!!

Senate chairmen should allow all senators to vote on a $1 cigarette tax increase and show their constituents how they stand on this important issue. The $1 cigarette tax increase would generate $174 million in new revenue while preventing thousands of kids from ever becoming smokers.

All senators should be given an opportunity to let their constituents know how they stand on this important issue. Committee chairmen should not make this decision in isolation. Chairmen should not pocket veto this bill by prohibiting their committee from voting. A vote by Senate committees is necessary and important to ensure that the democratic process works.

Tell Bryan and Kirby to LET YOUR SENATOR VOTE!

CALL THIS WEEKEND

HOB BRYAN @ (662) 256-9989

DEAN KIRBY @ (601) 932-1966

CALL PHIL

2008-02-29T13:43:00.001-08:00

Ask the Lt. Governor to
LET THE SENATE VOTE!!!

H.B. 1013 has been referred
to the Senate Public Health & Welfare and Finance Committees.

Call Phil Bryant and tell him to
let the process work.

His Chairmen should allow Senators to vote on a $1 cigarette tax increase and show their constituents how they stand on this important issue.

Call the Lt. Governor @ 601-359-3200
Wednesday, March 5, 2008

Tell Phil Bryant to ensure there is:
Ø No Pocket Veto by his Chairmen
Ø A Floor Vote by the full Senate on a $1 Cigarette Tax increase

HB 1013 passed the Mississippi House of Representatives and is now before the state Senate Public Health & Welfare and Finance Committees.The measure contains a $1.00 cigarette tax that would raise $174 million in new revenue. These additional resources will be used to fund Medicaid, a health care safety net for our children and elderly, and a trauma care system

Call Lt Governor Bryant and tell him Let the Senate Vote. All Senators should be given an opportunity to let their constituents know how they stand on this important issue. Committee chairman should not make this decision in isolation. Chairman should not pocket veto this bill by prohibiting their committee from voting. A vote by Senate committees is necessary and important to ensure that the democratic process works.

Call the Lt. Governor @ 601-359-3200

Latest on HB 1013

2008-02-29T12:32:00.000-08:00

HB 1013 Referred to Senate Public Health and Welfare, Finance

After passing in the Mississippi House of Representatives by a 75-41 margin,
House Bill 1013 has been transmitted to the State Senate and doubly referred to the Senate Public Health & Welfare and Finance Committees. March 18 is the deadline for these committees to vote on bills originating from other chambers—which

The legislation is doubly referred because it encompasses both Medicaid and tax policy. The Senate Public Health and Welfare Committee is typically the initial clearinghouse in the State Senate on legislation concerning Mississippi’s Medicaid program. It also a custom that legislation in the Senate concerning tax policy is referred the Finance Committee. However, the committee allocation of all legislation in the Senate is the purview of the Lt. Governor—Phil Bryant.

Senator Hob Bryan of Amory chairs the Senate Public Health & Welfare while Senator Dean Kirby of Pearl is his counterpart in the Senate Finance Committee.

Public Health and Welfare Hob Bryan, Chairman; Alan Nunnelee, Vice-Chairman Members: Terry C. Burton; Eugene S. Clarke; Bob M. Dearing; Joey Fillingane; Hillman Terome Frazier; Billy Hewes III; W. Briggs Hopson III; John Horhn; Cindy Hyde-Smith; Gary Jackson; Kenneth Wayne Jones; Tom King; Chris McDaniel; Nolan Mettetal; Willie Simmons; Bennie L. Turner; Lee Yancey

Finance Dean Kirby, Chairman; Eugene S. Clarke, Vice-Chairman Members: Sidney Albritton; David Baria; Terry W. Brown; Nickey Browning; Hob Bryan; Kelvin E. Butler; Deborah Jeanne Dawkins; Tommy Dickerson; Joey Fillingane; Billy Hewes III; John Horhn; Robert L. Jackson; Kenneth Wayne Jones; David Jordan; Tom King; Chris McDaniel; Nolan Mettetal; Walter Michel; Eric Powell; Gray Tollison; Johnnie E. Walls, Jr.; Giles Ward; Michael Watson; Lee Yancey

WLBT Sound Off: Medicaid Funding

2008-02-27T14:09:00.000-08:00

"So do we tax our local hospitals, who heal the sick or the out of state tobacco companies, who make us sick? I think we all know the right answer. " -- Dan Modisett, WLBT General Manager.

Click Here: Sound Off: Medicaid Funding

WDAM Cig Tax Editorial

2008-02-27T07:28:00.000-08:00

Click Here: Editorial: Cigarette Tax

Role Call on HB 1013

2008-02-25T07:41:00.000-08:00

Link to the vote: http://billstatus.ls.state.ms.us/2008/pdf/votes/house/0450006.pdf

House passes $1.00 cigarette tax increase

2008-02-21T12:09:00.000-08:00

By Natalie Chandler • natalie.chandler@clarionledger.com • February 21, 2008

Seventy-four lawmakers supported House Bill 1013, while 42 opposed it. The bill needed 70 votes to pass. It now heads to the Senate for approval, but the legislation faces hurdles there.The state’s 18-cent cigarette tax is among the lowest in the nation. House Bill 1013 would raise it to $1.18. Medicaid needs millions of dollars to continue serving citizens. If funding is not found, cuts in services will be required, officials have said.GOP Gov. Haley Barbour wants to tax hospitals instead. But several House Democrats argued that tax would be passed on to patients.

Full Article: House passes cigarette tax hike bill

Call Your Representative Wednesday

2008-02-19T14:52:00.000-08:00

Call your Representative Wednesday and ask
him/her to vote for House Bill 1013- a measure that increases the cigarette tax by $1.00

HB 1013 would increase Mississippi's cigarette tax by $1.00 with 90% of the revenue earmarked for Medicaid. The other 10% would help fund the state's trauma system. The legislation will be taken up by the full House of Representatives as early as Thursday.

A cigarette tax increase is a win, win for Mississippi. It would save lives and save money by leading to a reduction in youth smoking while supplying the state with a new revenue source to fund Medicaid.

We need your help!
It is important that lawmakers recognize that they are in Jackson to represent the interest of the people not the bottom line of BIG TOBACCO.

Contact your Representative @ (601) 359-3770
Ask your Representative to:
· Vote for a $1.00 Cigarette Tax Increase
· Oppose Any Effort to Reduce that Amount

This is an opportunity for you to directly affect the health and welfare of this state. Let your Legislators know why this issue is important to you.

Ways and Means passes cigarette tax bill to fund Medicaid

2008-02-19T07:06:00.000-08:00

By SHELIA BYRD
Associated Press Writer

JACKSON, Miss. --The House Ways and Means Committee approved two pieces of legislation on Monday aimed at creating revenue sources for the Division of Medicaid and the state's struggling trauma care system.
Committee members heard from House Medicaid Chairman Dirk Dedeaux, D-Gulfport, who explained that one bill would increase the excise tax on cigarettes by $1.
Currently, Mississippi's cigarette excise tax is 18 cents - among the lowest in the nation. Gov. Haley Barbour has vetoed past cigarette tax legislation and Senate Finance Committee Chairman Dean Kirby, R-Pearl, has said he won't consider any tax bills this year.
Dedeaux said the tax would generate about $174 million annually, based on figures from the Stennis Institute of Government at Mississippi State University. He said 90 percent of the revenue would be earmarked for Medicaid. The other 10 percent would go to the trauma system.
Lawmakers are searching for a revenue source for Medicaid because the health care program for the underprivileged is facing a $92 million deficit in the current fiscal year. And, Medicaid Executive Director Robert L. Robinson has told lawmakers the program will need an extra $168 million in funding for the fiscal year that begins July 1.

Ways and Means passes cigarette tax bill to fund Medicaid

CALL THESE MEMBERS OF WAYS AND MEANS

2008-02-15T12:41:00.000-08:00

HB 1013 will now move to the House Ways and Means Committee, where it must pass before heading to the full House. Opponents of the Bill favor imposing a tax on hospitals- that would be directly passed on to patients- and cuts in services to cover the Medicaid shortfall. However, a $1.00 cigarette tax increase is a win, win for Mississippi. It would save lives and save money by leading to a reduction in youth smoking while supplying the state with a new revenue source to fund Medicaid.

In 2007, the 7 members of the House Ways and Means Committee listed below voted against legislation that would have increased Mississippi's cigarette tax.

Jim Ellington (601)857-0906 (H)
District 73 - Hinds
Mark Formby (601)798-8917 (H)
District 108 - Pearl River
Bobby B. Howell (662)262-7171 (H)
District 46 - Attala, Carroll, Grenada, Leflore, Montgomery
John L. Moore (601)825-5031 (H)
District 60 - Rankin, Simpson
Bobby Shows (601)477-9225 (H)
District 89 - Jones
Jeffrey C. Smith (662)327-0407 (H)
District 39 - Lowndes
Tommy L. Woods (662)838-6201 (H)
District 52 - DeSoto, Marshall

Contact these members of the House Ways and Means Committee over the weekend and ask them to vote for House Bill 1013 and allow the full House to
consider increasing the cigarette tax.

Or Call them at the Capitol on Monday @ (601) 359-3770

Movement in the House

2008-02-15T12:36:00.000-08:00

CCBH would like to thank Chairman Dirk Dedeaux and the other members of the House Medicaid committee for voting in favor of House Bill 1013.
Thursday evening HB 1013 passed through the House Medicaid Committee without any dissent. The measure, sponsored by Rep. George Flaggs, would fund the Medicaid's deficit by increasing the cigarette tax by $1.00. During the committee meeting, Chairman Dirk Dedeaux stated that increasing the cigarette tax was a more favorable option to help fund Medicaid as opposed to imposing a tax on hospitals, which would likely be passed on to patients.

http://djournal.com/pages/story.asp?ID=265996&pub=1&div=News

2008-02-13T12:55:00.001-08:00

Marshall Ramsey Cartoon on the cigarette tax.

Cigarette Tax Bills

2008-02-07T14:16:00.001-08:00

SB2439%$
Tobacco and sales tax; increase excise tax on cigarettes, reduce sales tax on certain foods and revise certain diversion. 01/28 (S) Referred To Finance

Blount
Senate Bill 2439 is co-sponsored by Senators David Blount, David Baria, Eric Powell, Haskins Montgomery, Doug Davis, and Bill Stone. The legislation would increase the state’s cigarette by $1.00 while cutting the grocery tax in half. It has been referred to the Senate Finance Committee.

HB 20%$
Tobacco tax and sales tax; increase excise tax on cigarettes, reduce sales tax on certain food and revise diversion to municipalities. 01/21 (H) Referred To Ways and Means

Mayo

House Bill 20 is co- sponsored by Representatives Mayo, Clarke, Banks, Brown, Buck, Burnett, Evans (91st), Fredericks, Gardner, Hines, Holland, Holloway, Johnson, Lane, Reynolds, Robinson, Smith (27th), Straughter, Thomas, Watson, and Whittington. The legislation would increase the state’s cigarette to $1.00 while cutting the grocery tax in half. It has been referred to the House Ways and Means Committee.

HB 22%$
Cigarettes; increase excise tax on. 01/21 (H) Referred To Ways and Means

Mayo
House Bill 22 is co-sponsored by Representatives Mayo, Clarke, Banks, Brown, Burnett, Evans (91st), Fredericks, Gardner, Hines, Holloway, Johnson, Lane, Reynolds, Robinson, Smith (27th), Straughter, Thomas, Watson, and Whittington. The legislation would increase the cigarette tax by $1.00, with the additional revenue to go the state’s general fund. It has been referred to the House Ways and Means Committee.

HB 73%$
Cigarettes; increase excise tax on and earmark revenue from increase for certain purposes. 01/21 (H) Referred To Ways and Means

Flaggs
House Bill 73 is sponsored by Representative George Flaggs. The legislation would increase the cigarette tax by 50 cents, with the additional revenue earmarked towards healthcare expenditures. It has been referred to the House Ways and Means Committee.

HB 209%$
Tobacco and sales tax; increase excise tax on cigarettes, reduce sales tax on certain food and revise diversion to municipalities. 01/24 (H) Referred To Ways and Means
House Bill 209 is sponsored by Representative Percy Watson. The legislation would increase the state’s cigarette to $1.00 while cutting the grocery tax in half. It has been referred to the House Ways and Means Committee. It has been referred to the House Ways and Means Committee.

HB 371%
Medicaid; bring forward laws for amendment, and increase excise tax on cigarettes. 01/29 (H) Referred To Medicaid;Ways and Means

Flaggs

HB1013%
Medicaid; bring forward laws for amendment, and increase excise tax on cigarettes. 02/04 (H) Referred To Medicaid;Ways and Means
House Bill 1013 is sponsored by Representative George Flaggs. The legislation would increase the cigarette tax by 50 cents, with the additional revenue earmarked towards healthcare expenditures. It has been referred to the House Ways and Means Committee.

A Done Deal??

2008-01-24T14:25:00.000-08:00

Governor Barbour released the names of those appointed to his Tax Study Commission yesterday- Jan 23. The list included the infamous former state Senator Tommy Robertson. Robertson, as Chairman of the Senate Finance Committee, blocked legislation that would have increased the cigarette tax up to a $1.00 while cutting the grocery tax by half. In August, Robertson was soundly defeated in the Republican primary largely due to his opposition of that popular piece of legislation.

Some comments from CL Editorial Director David Hampton: "Barbour has appointed some very good, highly qualified people. This is not to criticize any individual. I know many of them. But missing are avearge taxpayers and "people's" representatives. It is top heavy with politicians and businessmen. In fact some of the business, insurance and agricultural groups represented are the reason the tax system is in such a mess." Link DAVID HAMPTON: Tax study commission

The Complete List:
http://www.governorbarbour.com/news/2008/jan/TaxCommishMembers.htm

$1.00 stand alone bill

2008-01-22T14:29:00.000-08:00

Rep. John Mayo has introduced a $1.00 cigarette tax increase.

Link: HB 22

The bill is co-sponsored by Representatives Clarke, Banks, Brown, Burnett, Evans (91st), Fredericks, Gardner, Hines, Holloway, Johnson, Lane, Reynolds, Robinson, Smith (27th), Straughter, Thomas, Watson, Whittington.

House Bill 73

2008-01-22T14:24:00.000-08:00

Representative Flaggs submitted legislation that would increase Mississippi's excise tax on cigarettes by 50cents.

Link: HB 73

The bill would earmark the revenue in the following: (a) One third (1/3) of the revenue collected shall be 71 deposited into the Health Care Expendable Fund created in Section 72 43-13-407. 73

(b) One third (1/3) of the revenue collected shall be 74 deposited into the special fund to the credit of the University of 75 Mississippi Medical Center that is created in Section 3 of this 76 act. 77

(c) One third (1/3) of the revenue collected shall be 78 deposited into the Mississippi Trauma Care Systems Fund created in 79 Section 41-59-75.

Whose Side Are You On?

2008-01-15T14:33:00.000-08:00

A series of billboards, including two just blocks away from the capitol building, ask lawmakers to choose sides— Mississippi kids or Big Tobacco.

When we increase tobacco taxes, our kids win and Big Tobacco loses. Why? he more cigarettes cost, the less people smoke—especially kids.

The billboards, which pose the question “Whose side are you on?” while depicting a pack of cigarettes and a group of children, are located on High and West streets, Lakeland Drive, Highway 80 in Pearl, Highway 51 in Madison, Highway 49 in Florence, I-220 near County Line Road, and I-55 S near Byram.

Mississippi Receives all F's

2008-01-11T13:44:00.000-08:00

The American Lung Association released its State of Tobacco Control Report Cards for each state and the federal government. Mississippi earned F's in Tobacco Prevention and Control Spending, Smokefree Air, Cigarette Tax, and Youth Access.

During the 2008 legislative session, the American Lung Association of Mississippi will continue to work with organizations like the Communities for a Clean Bill of Health to ensure successful passage a cigarette tax increase, statewide smokefree legislation, and additional tobacco prevention and cessation funding

Some Key Committee Appointments

2008-01-11T13:42:00.000-08:00

Finance: Chairman Dean Kirby, R-Pearl; Vice Chairman Eugene “Buck” Clarke, R-Hollandale.

Appropriations: Chairman Alan Nunnelee, R-Tupelo; Vice Chairman Doug Davis, R-Hernando.

Public Health and Welfare: Chairman Hob Bryan, D-Amory; Vice Chairman Alan Nunnelee, R-Tupelo.

Medicaid

2008-01-11T07:54:00.000-08:00

The Problems with Medicaid:

Mississippi’s Division of Medicaid needs a deficit appropriation of $86 million to maintain services for FY 08 (ending June 30, 2008).

To continue current service levels, an additional $168 million is needed to fund Medicaid through FY 09.

Medicaid spends $264 million on tobacco related healthcare expenditures while the state’s excise tax on cigarettes only generates $43 million annually.
Mississippi has continued to use one time monies—the Healthcare Trust Fund or Federal aid—as temporary solutions to Medicaid’s funding woes. The state needs a steady source of revenue to fund the program on a long-term basis.

Lawmakers must find funding for this program that provides healthcare coverage for the poor and elderly or make cuts in beneficiaries or service. Approximately 100,000 beneficiaries would have to be cut from the program in order to close the budget gap. However, the last cuts in the Medicaid program resulted in an overwhelming public outcry and court intervention.

The Solution:

A $1.00 per pack cigarette tax increase would result in $163 million in new revenue that would go towards funding Medicaid.

43,000 kids alive today would not smoke as a result of $1.00 cigarette tax increase. Combined that with 23,400 adults who would quit smoking and Mississippi will save $971 million in long-term healthcare costs.

A $1.00 cigarette tax increase would provide a steady, predictable, and dedicated stream of revenue for Medicaid. Despite declines in smoking, each state that has raised its cigarette tax has seen an increase in revenue.

Increasing Mississippi’s cigarette tax—currently 18 cents and 49th in the nation—would end the state’s continuing healthcare subsidy for smokers. Medicaid spends $264 million on smoking related healthcare costs each year while the state’s excise tax on cigarettes only generates $43 million annually.

Once a model for the nation/ Now middle of the pack!

2007-12-12T13:58:00.000-08:00

Miss. listed 27th in nation for funding tobacco prevention
The report called for the implementation of tobacco control measures. Those included prevention programs, higher tobacco taxes and smoke-free workplace laws.

"The report — released Wednesday — also found that tobacco companies spend $183 million a year on marketing in Mississippi, almost 23 times the state funding for tobacco prevention."

Links to: Rankings & Full Report

Jack Gordon on the Cigarette tax

2007-12-06T07:45:00.000-08:00

From the AP:

Lawmakers have suggested the creation of a funding source for Medicaid, most likely through a tax. But legislation to reduce Mississippi's 7 percent grocery tax and increase the excise tax on cigarettes have failed in previous sessions. And, Barbour has repeatedly said he's against raising taxes.

"There's a lot of states that have used the tobacco tax increase to (fund Medicaid)," Jack Gordon said. "We have not had very good success at taxes so I don't know if that's a viable source or not to get that passed."

Could Cigarette Tax Fund Medicaid?

2007-12-05T07:05:00.000-08:00

It could if you ask House Public Health Committee Chairman Steve Holland.

Holland said lawmakers will look at health care providers and how the agency can better deliver services. He also said creating a revenue source, through taxes or fee assessments, also will be considered.

"The tobacco tax would not solve this problem, but it would come close better than anything else," Holland said, referring to an unsuccessful legislative proposal to raise the state's tobacco excise tax and reduce the grocery tax.

Link:Medicaid funding shortage could lead to service cuts

A $1.00 cigarette tax increase would provide Mississippi with $165.3 million annually in additional revenue.

Reflector Letter

2007-11-29T13:19:00.000-08:00

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

2007-11-20T07:39:00.000-08:00

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

2007-11-19T08:34:00.000-08:00

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

Legislative Turnover and Senate Leadership

2007-11-14T12:16:00.000-08:00

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!

2007-11-09T06:50:00.000-08:00

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

2007-11-06T19:12:00.000-08:00

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

2007-11-06T13:56:00.000-08:00

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

2007-11-05T12:52:00.001-08:00

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

Matt Myers at the CCBH Luncheon

2007-11-05T12:40:00.000-08:00

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!!!!

2007-11-05T12:33:00.000-08:00

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.

2007-11-02T12:53:00.000-07:00

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 ?

2007-11-02T07:44:00.000-07:00

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.