Category Archives: taxes

Complaint filed over Big Tobacco-funded effort to oppose Montana tobacco tax

A group is proposing a $2 a pack tax increase to help raise funding for Medicaid in Montana.

For Montana, that is a big tax increase and such a proposal is likely fighting an uphill climb in maybe the most Libertarian state in the country. You might be surprised to know that about 10 years ago, Montana voters did approve a $1 a pack cigarette tax hike. But, times have changed. People have become more extreme in their positions since then.

Anyway, the group behind the measure, Healthy Montana, filed a complaint against a group opposing the measure — Montanans Against Tax Hikes, for illegal campaign behaviour, including not reporting expenditures and making illegal robocalls to Montana voters.

First thing I thought was, “oh, I bet MATH is actually funded by Big Tobacco.”

Sure enough, from a Missoula Current article:

The complaint says Chuck Denowh, the treasurer for MATH, also filed a letter with the Montana attorney general in April, “opposing the proposed ballot statements for I-185 on behalf of Altria Client Services LLC and Rai Services Company, whose parent companies dominate the tobacco market, controlling roughly 86% of the market share in 2016.”

Sure enough, as we all know Altria is the company formerly known as Philip Morris. And Rai Services Company, I had to Google. It’s the parent company of — you guessed it — RJ Reynolds.

Quelle shock, huh? So MATH is bankrolled pretty directly by Big Tobacco.

Anyway, this just blew me away, incredibly, one of the robocalls offered people $100 if they called back. I’d love to know if anyone actually received their $100.

Montana’s current tobacco tax is $1.70 a pack, which is almost exactly the national average ($1.68 a pack).

Anyway, in addition to the cigarette tax increase, the proposal would also increase smokeless tobacco taxes by 33 percent and taxes on vaping products. I’ll be keeping on eye on this ballot measure in November. Again, this being Montana, where the sheep are nervous and the taxes are detested, I can’t hold my breath about its chances.

 

Cute story from Connecticut about avoiding cigarette taxes

Connecticut

OK, this made me chuckle, and it kind of highlights some of the problems with states having wildly divergent cigarette taxes.

A gas station in Chester, N.Y., which is right on the N.Y.-Connecticut border, parked an ice cream truck at the far end of its parking lot, which is technically in Connecticut, so it could sell cigarettes for $1.35 less a pack than what they cost in New York. The Connecticut cigarette tax is $3 a pack, while the N.Y. tax is $4.35 a pack.

The gas station is using an old ice cream truck and according to the Connecticut Department of Revenue, it is legal.

This is kind of cute, but it also shows the problems with states having different cigarette taxes. If you have one state with a tax $1 a pack higher than a neighbouring state, then smokers will go to the trouble of crossing the border to load up on cartons of cigarettes. If they buy six cartons of cigarettes, they’ve just saved $60 in taxes. It also really ads to the black market of cigarettes, too.

Arizona considering tax on smokers, obese

state-flag-arizona
Hah, that race-baiting Arizona governer Jan Brewer is now suggesting that Arizona impose a tax on smokers and the obese.

Arizona Medicaid may consider a $50 annual tax on smokers and the obese. What I find it funny is that Republicans piss and moan the loudest about NANNY STATE, and these are the most fascist right-wing Republicans on the planet proposing this. For instance, diabetics who fail to follow their doctor’s order to lose weight would have to pay this tax.

I actually don’t have a strong opinion about this one way or the other (Private insurance companies already charge smokers and diabetics more for their premiums, so it is not a novel concept). Again, I just find it funny that such a right-wing douchebag state administration that got voted into office by “keep gubmint out of our lives” old people (who are probably getting Medicare and Social Security) is considering doing this, apparently out of sheer desperation because their Medicaid is broke.