Governor Jon Huntsman Jr. approved a $ 2.30 tax increase on a pack of cigarettes this morning, giving Utah the highest state cigarette tax in the country to destroy the remaining state sales tax on food.
"I think it is quite fair compromise," the governor said after a public embracing a tax hike for the first time, and how to go further than previous legislative proposals. Trust hunter would more than quadruple the current 70 cents tax on a pack of smokes.
Legislative leaders were open to the idea, and said that he would be one of the topics discussed in the upcoming legislative session.
Speaker of the House of Representatives Dave Clark, R-Santa Clara, said he would support increasing taxes on tobacco, yet it was an equal tax cut.
"I think you can move quickly to [raise] the tax on tobacco to remove the sales tax on food," said Clark, speaking with one voice under the auspices of the discussion of legislative priorities.
Senate President Mike Waddoups, R-Taylorsville, said that the governor's proposal would need to be batted around.
"I've always been a supporter of removing the state tax on food, but as I listen to my advice, I'm not sure what they are," he said. "Most television is absolutely his campaign on promises without raising taxes. ... This is an alternative that needs to be discussed.
Sen. Allen Christensen, R-North Ogden, has already created a bill that would raise the tax on a pack of cigarettes to $ 2. Offer hunter would raise it to $ 3. A pack of cigarettes now costs between $ 3.50 and $ 5 Pack.
As in August last year in New York had the highest state cigarette tax in the country at $ 2.75, according to data collected during the campaign for Tobacco-Free Kids. Nevertheless, in many cities across the country to impose its own cigarette tax, which makes the package cost is much higher. The national average was $ 1.18.
Michael Siler, director of public affairs for the Utah chapter of the American Cancer Society, said he was aware at the time as the Governor in support of higher taxes on tobacco, but did not know how much it will establish a goal.
"As far as we know, this is a good thing," he said, saying that would encourage smokers to hit out of habit and can help defray the costs associated with smoking.
Supporters of cigarettes said that every 10 percent increase in the cost of a pack of cigarettes, smoking will fall to 6.5 percent among youth and 2 percent among adults.
Utah Legislature and the Governor of the reduced state sales tax on food from 4.75 percent to 2.75 percent effective in January 2007 and then to 1.75 per cent as of January 2008.
Hunter said that the $ 3 per pack tax would bring $ 120 million to $ 150 million of income, for $ 60 million of current tax generates. Hunter said he would "more than sufficient" to eliminate the sales tax on food. It will cost about $ 75 million.
"It would be more coverage that the rest of the sales tax on food, and I think it would show a strong commitment to the people of the state, if we think creatively about how to get something like this done," said Hunter.
As suggested by Christensen, that the American Cancer Society and other networks to combat smoking and public health advocates provided support, most of the money would go towards the cost of health care and smoking cessation programs.
Siler said that they will continue as the money for these purposes, but the group recognizes that in these difficult times of budget can not happen. He said that his organization will continue to do business in the legislature this year and in subsequent years, it will be a worthy goal for new revenue.
Hunter said that, under his proposal, there will be a lot of money to halt and health programs.
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