Cigarette tax increase overdue

House Editorial

Sometimes 20 cents is just 20 cents. But Tuesday, that spare change translates into the start of a statewide push for better K-12 schools, higher education, public safety and health care.

Smokers, ironically, are to thank.

The state cigarette tax will increase to 20 cents per pack, up from its current 2.5 cents. Virginians will reap the benefits of lower income and food taxes in this necessary and long-awaited tax restructuring.

These minor initial cuts will be offset by the higher cigarette and sales tax, expected to generate $1.4 billion for the state’s general fund.

Cigarette smokers may initially luck out, especially with another 10-cent increase next July. Though many will gripe, few probably will take the hint. Smokers in other states didn’t, despite radically higher taxes per pack.

At 2.5 cents per pack, Virginia has the lowest cigarette tax in the nation. New Jersey ranks highest with $2.05. Rhode Island, Massachusetts and New York follow, charging a tax of more than $1.50 per pack.
This time next year, Virginia’s cigarette tax will total 30 cents for every pack of smokes — well below the nation’s median, which floats around 60 cents.

The increase is the first in the tax’s 44-year history. Though large, the tax isn’t rash, just overdue.

Some still claim the increase wasn’t ever necessary, arguing that the state didn’t require the extra funds to balance its budget. Their point is irrelevant, not because the state already has a $324 million budget surplus, but because Virginia always will need better schools, health care and safety. The increase is not only necessary — it is desirable. The benefits clearly outweigh the inconveniences.

When tax cuts aren’t proportional to tax increases, somebody loses. Despite this year’s restructuring, most Virginians won’t. The sales tax increase is minor — only half a percent, a rate that hardly will dent consumers’ pockets.

As it should, the largest burden falls on smokers, but not because the tax could curb their nasty habit. The logic is simple: those who can afford to spend beyond life’s necessities also can afford to pay beyond the minimum state taxes. Smokers, it seems, are willing to pay.