Staff Report | News

Tobacco tax climbs to $1 in April

Virginia Adams has been smoking for about five years, but the McBain junior said recent federal legislation may provide the motivation she needs to quit.

Beginning April 1, the per-pack federal excise tax on manufactured cigarettes will rise to $1 from 39 cents, raising retail cigarette prices about 20 percent nationwide.

“Smoking is bad for you and the economy sucks,” said Adams. “It will encourage people to quit.”

Combined with Michigan’s $2 per-pack tax, smokers will pay about $30 in taxes per carton.

Gov. Jennifer Granholm also wants to double the tax on rolling tobacco, cigars and snuff. State taxes on non-cigarette tobacco items would rise from 32 percent to 64 percent under Granholm’s budget plan.

The governor hopes the increase will bring in more tax revenue, while also pushing smokers to quit and discouraging new smokers from starting.

The tax increase will fund the federal State Children’s Health Insurance Program, which provides health insurance to children from low income families.

Bryan Gibson, a psychology professor at Central Michigan University, said noticeable decreases in smoking may not be seen for some time.

“The data seems to suggest that it’s a gradual process,” he said.

Gibson, who studies the social and psychological aspects of smoking, said smokers probably will not agree with the rationale behind the price hikes.

“People do understand they are doing something bad for their health, but they are self interested – they don’t want to shell out more money,” he said.

Experts say it is unlikely the tax increases will become law in 2009. In 2007, Granholm floated a similar proposal that died in the Legislature.

Michigan Senate Majority Leader Mike Bishop, R-Rochester, opposes tax and fee hikes to help balance the budget.

Since Republicans control the Senate, Bishop is likely to kill most of Granholm’s proposals.

Farmington Hills sophomore Jeffrey Smale smokes almost a pack a day, and said he has unsuccessfully tried to quit.

“People don’t tax fast food because it’s bad for you, why should smoking be different?,” said Smale. “The government is just trying to fix the economy and it’s not fair that smokers are stuck with the bill.”

metro@cm-life.com

E-mail the author: Abby Wood

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Abby Wood - who has written 3 posts on Central Michigan Life.




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