Don’t falter on cigarette tax hike
An increase in the state cigarette tax is long overdue and the Legislature should approve one this session. But lawmakers shouldn’t rush into the Medicaid expansion recommended by the Senate Finance Committee. Something less ambitious is needed. 
Last month, the Finance Committee approved, for the second year in a row, a major expansion of the state Medicaid program. Critics reasonably question whether the receipts from a 50-cent tax will be enough to cover the cost.
Sen. Larry Grooms, R-Berkeley, argues that the program expansion will be followed by an increase in participation that can’t be sustained by the tax hike.
Sen. Grooms, led an effort to use anticipated tax revenues, some $159 million, to provide tax credits to small companies for medical insurance for the working poor. That plan has the benefit of engaging the marketplace in a health care solution.
Senate President Pro Tempore Glenn McConnell says the Finance Committee plan for expanding Medicaid doesn’t have sufficient support in the full Senate for passage.
The Senate leader supports the tax credit idea, but says revenue from the tax hike also could be used to bolster the previous Medicaid expansion for children, as well as educational programs aimed at reducing tobacco use among young people. His compromise is worth exploring.
At 7 cents a pack, the state tax on discount cigarettes is the lowest in the nation, and hasn’t been increased in 20 years. An increase would raise money for health care programs but, as important, would likely reduce cigarette consumption, based on the experience elsewhere.
That in itself would be a step forward in the state’s general health and well-being.
The Legislature should recognize the general health care benefits that can be gained from taxing cheap cigarettes and move toward a solution that can be enacted this year.
