Tobacco Facts.

For backers of an increase in tobacco taxes, there is a number to keep in mind: 2012.

Despite the state House’s defeat of a tobacco tax increase, the reality is that the state budget is likely to be in worse straits in fiscal year 2012 than it is today, as temporary federal stimulus funds for health care run out and federal aid to Louisiana’s health-care budget declines.

We hope that significant numbers of House members will by then have faced financial reality and approved a tobacco increase to soften the blow.

The defeated proposal by Rep. Karen Peterson, D-New Orleans, would have raised about $100 million for health care this year. The state’s struggles with big budget shortfalls and the low level of Louisiana’s tobacco taxes compared with other states made little impression on the Republican-led House; only 45 members voted for the Peterson bill and 55 were against.

For now.

This week’s vote was far short of the 70 votes needed for passage of a tax bill in the House, although the bill was expected to get a warmer welcome in the Senate had it passed first in the lower chamber. But with opposition from Gov. Bobby Jindal and the powerful tobacco lobby, the Peterson bill faced an uphill battle in the House.

Jindal’s opposition is astonishing, given his background in health policy. Raising taxes on tobacco is a way to deter its use and avoid the heavy treatment costs of cancer and other smoking-caused diseases.

Still, remember 2012. That fiscal year will begin on July 1, 2011. This Legislature will have to face shortfalls of an estimated $1 billion or more that year, after significant cuts will be made this year to health care and higher education.

Members might be more reasonable when they’re up against that wall.
© Copyright: 2theadvocate

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