Dems differ on how to spend cig tax revenues

House Democrats are eyeing different uses for money generated by a proposed cigarette tax increase.

While some Democrats are expected to oppose the 30 cents a pack increase that won initial approval last week in the House Ways and Means Committee, most are likely to support a hike. 

At issue is how proceeds from the tax will be spent.

As the bill currently is written, a majority, but not all of the money raised by a new tax, would be used to improve health care for low income residents under the Medicaid program. That has been a longstanding goal of state Democrats.

"If we pass a cigarette tax, a majority of it should go to health care," said Democratic Majority Leader Harry Ott, D-Orangeburg.

Ott said amendments to the cigarette tax bill, which is expected to reach the floor for debate on Wednesday, may diminish or phase-out health care in the bill and direct more proceeds to eliminating the food tax. Ott said proposals may also surface to phase in the tax over 3 years.

"First of all,  I don't think we need the money," said Rep. Herb Kirsch, D-York. "If we get it, all we're going to do is spend it."

The bill is designed to extend health care to working Medicaid recipients who are at 100 percent of poverty, instead of the current 50 percent. Ott said Democrats were to be polled for their support of the bill later today.

Comments

[Erica]

cig tax going to healthcare...ironic, but makes sense i suppose

[Steve]

Kirsch says we don't need the money. What is he thinking, or is he? He and his cohorts are cuting the budget in key areas because there is a revenue shortfall, and we don't need the money?