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Thursday, October 14, 2004
Cigarette tax hurts economyBreeze Perspectivesby Patrick Callahan / contributing writer
Virginias cigarette tax is now 20 cents per pack and, after July
1, 2005, it will rise to 30 cents per pack.Less than four months ago,
a cigarette smoker in Virginia paid a tax of just 2.5 cents per pack
the lowest rate in the United States. Virginia is a state whose heritage
and traditions deeply are rooted in the tobacco trade, and it previously
had refused to follow the trend amongst states of raising cigarette taxes.
However, this mindset changed in the face of a severe budget crisis. But is raising cigarette taxes the right way to solve a budget crisis? As unhealthy as it may be, smoking is an individual choice. In 2000,
400,000 Americans died of obesity, second behind the 435,000 that died
from tobacco use, according to CNN. Both obesity and tobacco use are self-inflicted
harmful practices. Why isnt there legislation to raise taxes on
every Big Mac or Whopper in America? Smoking is an addiction. To take money from those people whom our government
allows to become addicted seems more than unfair. If smoking is such a
bad habit, why stop at raising taxes on it? Why not make it illegal altogether?
The answer is simple an illegal product cannot be taxed. Legislators
believe that raising taxes will deter people from smoking. This may be
true to some extent, but once people are strongly addicted to something,
they dont quit because the price to feed their addiction goes up.
Smokers will stop buying the higher-priced American-made cigarettes and
start buying cheaper, foreign-made ones. Likewise, cigarette manufacturers
will stop purchasing higher priced American-made tobacco and buy more
from other countries. Tobacco growers like those in Southwest Virginia
who grow high-quality tobacco will feel the hurtful impact of the
tax increase. It now is a well-known fact that smoking increases the likelihood of
cancer. But this discovery has not ended the habit which has existed for
centuries. Similarly, areas steeped in the tradition of tobacco growing
have not given up the crop, which has been so influential in their economic
growth. What will be done to protect the tobacco industry that is vital
to so many of our nations farmers Virginians especially? There is no definite answer. Rep. Rick Boucher, D-Va., proposed a bill
almost two years ago that essentially would buyout the tobacco industry
at the expense of U.S. cigarette manufacturers. However, this bill has
not yet gained enough support to pass, and President Bush has vowed to
veto it if it does. If a buyout is not the answer, then the federal government
must find some alternate means of leveling the playing field for tobacco
growers before the industry is outsourced altogether. Cigarette smoking
may be a dying trend, but it isnt fair to sacrifice the economic
well-being of those who legally grow or smoke it in an effort to solve
state budget woes. Patrick Callahan is an undeclared freshman. |
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