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Lawmakers debate raising cigarette tax
3/3/2008 1:20 AM  comment(s) on this story E-mail this story to a friend

Associated Press

COLUMBIA -- Lawmakers are debating how much to increase South Carolina's lowest in the nation 7 cents per pack cigarette tax and how to spend the money.

Tax proposals:

-- Increase the tax 30 cents, raising $141 million. House approved this increase last year.

-- Increase the tax 45 cents, raising $198 million. A Senate panel is considering the larger increase.

Other cigarette taxes:

-- $2.58, New Jersey, the nation's highest.

-- $1.12, U.S. average.

-- 37 cents, Georgia, ranked 43rd nationally.

-- 35 cents, North Carolina, ranked 45th nationally.

Spending proposals:

-- Gov. Mark Sanford wants to use the money to offset costs for an optional flat-tax program.

-- The House last year called for the money to be used mostly to cover elimination of sales taxes on groceries.

-- The Senate wants the money put in a trust fund and used for health care, including expanding Medicaid programs and creating tax credits to make insurance more affordable.

What other states have done:

-- Alaska in 2007 used a $1.80 tax increase for school buildings and smoking cessation with some money used to address budget issues.

-- Texas in 2007 used a $1 tax increase to reduce taxes and overhaul school finances.

-- Colorado in 2005 used half a 20 cent increase for children's health and Medicaid programs.

-- North Carolina in 2006 increased its tax by five cents to 35 cents. The money was not earmarked.

Source: State Board of Economic Advisors, South Carolina Senate, Campaign for Tobacco Free Kids.






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