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Kaine proposes cuts, cigarette tax increase Date published: 12/17/2008
RICHMOND-- Gov. Tim Kaine will propose a 30-cent a pack increase in the cigarette tax today as part of his plan to fill a nearly $3 billion budget shortfall.But Republican leaders say that could lead to job losses at cigarette manufacturer Philip Morris, something they want to avoid in the current recession. Kaine is presenting his two-year budget proposal to the General Assembly money committees this morning. He outlined the key elements of his budget to legislative leaders in phone calls yesterday. Kaine spokesman Gordon Hickey would not confirm or deny any of those elements. That includes the proposed increase in the cigarette tax from 30 cents per pack to 60 cents per pack, according to the Associated Press and lawmakers. Sen. Edd Houck, D-Spotsylvania, said his understanding is that the increased money from the cigarette tax would go toward health programs, which the Associated Press reports will see a $400 million cut in Kaine's budget. Houck said he wants to see more details of where the new money would go, but is open-minded. "I'm not opposed to a cigarette tax increase. I'm still not exactly clear what it was going to be used for and the parameters of it. I'm going to reserve judgment on it until we hear the details about it," Houck said. "But I wouldn't reject it out of hand at all." But House Speaker Bill Howell, R-Stafford, and U.S. Rep. Eric Cantor, R-Henrico, disagree. The two held a joint press conference call yesterday to blast the tax proposal. "What the governor is going to do now, is he is going to go after one of Virginia's biggest employers by imposing a job-killing tax," Cantor said. "This issue is about jobs, it's about the economy and this is an attack on Virginia's economy." Cantor represents Richmond, home of Altria, the parent company of cigarette-manufacturer Philip Morris. Altria recently moved its corporate headquarters from New York to Richmond. The Richmond area has already seen numerous layoffs from various companies, Cantor said, and can't afford more. Howell said Philip Morris employs about 5,500 people, and it's "perplexing" to him why Kaine would tax a company that has worked to create jobs.
A study by economics professor Dwight Lee, Center for the Study of American Business, Washington University in St. Louis, shows that when Michigan raised the tax on cigarettes from 25 to 75 cents a pack, legal sales fell 30%, although the actual percentage of smokers increased. Cigarette sales in surrounding low-tax states skyrocketed as did rampant smuggling.
that 87% of the highest 90% earners in the medical
community own a direct or indirect interest in the alcoholic
beverage industry.
Besides, real men can't just have one.
P.S. The anti oxidants are contained in the seeds.
Actually, I believe the medical community believes moderate
alcohol use (beer,wine or spirits) IS better for you than
teetotalling. Red wine is probably best because of it's antioxidants.
and it is not the alcohol that benefits you, it's the content of
the grape seed.
Funny how in Virginia you can only buy liquor from the State
government..haha that's funny.
A drink a day turns out to be more healthful for you than
abstaining from drinking.
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