Lawmakers debate raising cigarette tax3/3/2008 1:20 AM 
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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.