The appetite to raise taxes seems to be growing as the Utah Legislature prepares for an anticipated $700 million budget shortfall. This is especially true for the tobacco tax proposed by Davis County Republican Representative Paul Ray.
“I do not support any type of tax increase normally, but again, this is a tax where the tobacco companies are making billions of dollars off of people — they’re killing people. You know, they’re using blood money, basically,” Ray says. “But yet, the state, this is the only way we have to recoup the money that we’re paying for health care for smokers and so to me it’s a legitimate way to do that.”
Ray’s proposal would nearly double the sales tax on a pack of cigarettes from 69.5 cents to $1.31. Then it would automatically re-set the tax at one cent above the national average, which Ray believes is fitting because Utah doesn’t have many smokers.
Ray says there was enough support to pass his tax increase earlier this year, but legislative leadership wanted to save it as an option for next year. There’s also talk of raising other taxes, including the gas tax and the income tax. But Senate President Michael Waddoups says the tobacco tax increase is the most likely to pass.
“I think there’s a number of revenue sources that need to be looked at,” Waddoups says. “The easy one is the tobacco tax that was discussed last year in my body. I wouldn’t say it was unanimous, but I think it is going to be the easiest one to pass.”
State leaders cut a billion dollars from the budget last year, but about 40 percent of that was restored by federal stimulus money. Without that federal assistance coming in next year, lawmakers might tap up to half of the state’s $420 million Rainy Day Fund.
No comments:
Post a Comment