Monday, February 23, 2009

Granholm "no new Taxes" Granholm

Is a lying liar:

She has called for doubling the state tax on loose tobacco, cigars and snuff to help balance next year's state budget. That's on top of whopping increases in federal tobacco taxes -- including those for manufactured cigarettes -- that take effect April 1 to pay for expanding health insurance for low-income children, known as SCHIP.

The biggest federal tax increase hits roll-your-own tobacco, rising from $1.10 per pound to $24.78 per pound. Store-bought cigarette taxes are headed from 39 cents per pack to $1.01 per pack.

Granholm's budget wouldn't touch Michigan's $2-per-pack cigarette tax. But it would slam other tobacco smokers, chewers and puffers who've been a favorite tax target for states to balance budgets and, in the name of good health, discourage tobacco use.

If approved by the Legislature, state taxes on non-cigarette tobacco items would jump from 32% of wholesale price to 64% next year. Combined with the new federal tax, the average price of a one-pound bag of popular Gambler tobacco would skyrocket from $19 to $70 in Michigan.

These taxes are intended to pay for SCHIP. Lemme let you in on a little secret. If this goes through, fewer and fewer will smoke. OR, at least buy their tobacco in Michigan. So ... once the revenue dries up, what will they use to pay for SCHIP?