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Florida Smokers Could Solve State's Budget Crunch

@ November 21, 2008 6:16 AM Permalink | Comments (3)

With Florida economists expected to announce a growing budget deficit today, one South Florida lawmaker thinks a big tax on a bad habit can help make up revenue.

Jim Waldman (D-Coconut Creek) has filed paperwork to raise the state's cigarette tax by a full dollar a pack to help cover the costs of public health care.

"I think you need to have a source of revenue that can pay for health care costs and this can do it," the legislator says. "We are calling it a user fee because this is to go to the cost of healthcare for those individuals who are suffering."

Florida's cigarette tax sits at about 34 cents a pack, one of the lowest in the county, and hasn't been raised in more than a decade. Waldman believes the tax hike could generate a billion dollars a year.

It's just one option lawmakers are mulling in advance of a Friday financial forecast from state economists. Each time the group of experts has met in recent months, revenue projections have fallen. Back in August, the group anticipated a $1.3 billion shortfall. That budget hole is expected to grow today.

"We'll see what reserves we have to handle the situation," Governor Charlie Crist told reporters Thursday.

The governor is considering borrowing a billion dollars from a lucrative tobacco settlement fund to make up growing budget gaps. As for weighing in on that proposed cigarette tax, Crist wouldn't rule anything out Thursday, only telling reporters "taxes aren't something I'm very warm and fuzzy about."

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What others are saying

why put the burden of bailout on the backs of a few
its sad and sorry when the few greedy people left are willing to continue to dump the rest of the bail out burden on the backs of a few because they smoke the packs of cigarettes that are bought will not be enough to bail out the florida short fall. but it is enough to further backrupt a few just because they smoke. Why punish us twice
By smoker @ 03/03/09 02:52:19 PMreport abuse
Again the Politicians look at raising taxes!
Again the Politicians look at raising taxes instead of cutting back in programs and or laying off publicly paid employees. We are all cutting back you Politicians need to get used to it and I think for a while at that. Why don’t we start with the laying off with the Politicians that suggest raising taxes. It should be a law that the Politian’s who raise taxes have it stated they did so, on the next ballot when they run for re-election! PS: I am not a smoker just a tax payer and voter who is getting very tired of the same old stuff coming from the same old Politicians. It was hard but I kept my commentary on this subject matter clean.
By dmb@jax @ 11/21/08 03:56:45 PMreport abuse
Cigarette Tax? How About an Alcohol Consumption Tax
Why is it always a Cigarette Tax. The proposal is always to off-set the cost of healthcare. Why not and alcohol consumption tax. There are many health risk associated with consumption of alcohol not to mention the havoc chronic and/or over consumption poses on society as a whole. Divorce, alcohol related motor vehicle accident resulting in innocent maiming and death. Additionally, the revenues generated from an increased tax on alcohol would be much greater than that of cigarettes. How about an increase of $1.00 per can of beer and $1.00 for every 2 ounces of hard liquor? Why not?? Or is it because most of our holy-than-thou, alcohol consuming legislators do not want an additional tax burden placed on their chosen vices??

Maybe....

JHarris
Hilliard, FL
By JHarris @ 11/21/08 09:30:51 AMreport abuse