DES MOINES, Iowa -- In a joint session of the Iowa Legislature, Governor Chet Culver (D) called on legislators toamong other thingsimprove Iowans' quality of life through increasing access to health care. Culver said a key component to increasing Iowans' quality of life and maintaining fiscal responsibility is to pass a $1 increase in the tobacco tax.
He stressed that increasing the tobacco tax by $1 will cause fewer people to smoke. This will save lives and save taxpayer dollars by decreasing the amount of Medicaid funds spent on smoking-related illness, [image-nocss] he added.
In an attempt to deliver on our promises and significantly increase access to quality health care for all Iowans, I am proposing an additional $140 million to meet our most immediate health care needs, said Culver. And, I've identified, I believe, the only responsible way to pay for it. That's why I am asking you to increase Iowa's cigarette tax by one dollar per pack. This step will generate approximately 140 million dollars in new revenue the first year and save more than 17,000 lives.
Confronting hesitation by some of his party's legislative leaders about raising the tax a full dollar, Culver challenged lawmakers to get on board with an issue that was a part of his winning campaign and that a clear majority of Iowans support, added a report by the Des Moines Register.
I understand that some appear to suggest that we should only increase the cigarette tax by 30 to 60 cents. But in this case, half measures will not even produce half the results. I strongly believe the number needs to be a dollar, Culver said, sparking cheers from many of the Democrats in the House chamber and a contingent of students looking on from the gallery, according to the report.
For leaders who had reservations about a dollar jump, Culver's argument that raising the per-pack tax to $1.36 would curb smoking and pay for his health care plans had an effect. I think if we had a vote now, it would be pretty tough to vote against the guy, House Speaker Pat Murphy (D) said after Culver's 35-minute speech to the joint session of the Iowa Legislature at the Capitol in Des Moines.
Murphy previously has said a more realistic proposal would be to raise the cigarette tax by 40 cents to 60 cents a pack. Such an increase would keep Iowa cigarette prices competitive with those in Nebraska, Council Bluffs convenience store executive Doug Coziahr told the newspaper. At least look at the surrounding states and let us be somewhat lower than them so we can be aggressive about keeping our customers in Iowa, said Coziahr, vice president of a family-owned Bach Petroleum Fill & Food Stores.
Raising the tax a dollar would make a pack of cigarettes about 72 cents more expensive in Iowa than Nebraska. Iowa's 36-cent tax is among the lowest in the region, and ranks 42nd in the country, said the report. Of Iowa's neighbors, only Missouri's cigarette tax is lower, at 17 cents. South Dakota's is $1.53, with Minnesota at $1.49, Illinois at 98 cents and Wisconsin at 77 cents.
Nebraska's tax is 64 cents per pack, the report added; however, Nebraska has a higher state gasoline tax, it said, leaving open the question of whether Omaha residents who cross the Missouri River to buy cheaper cigarettes and gasoline will still make the trip if the price of Iowa cigarettes jumps.
Culver's speech forced lawmakers concerned about the potential economic impact on cigarette retailers to weigh the costs to businesses against the public benefit, said State Representative Paul Shomshor (D), chairman of the House Ways & Means Committee. Shomshor said he is not yet convinced he could support the full increase. Raising it a dollar would be a challenge for some people in my community, he said. I'm just saying preventing teen and child smoking is a very compelling goal.
A Des Moines Register poll taken this month showed 67% of Iowans support increasing the tax by a dollar, compared with 30% who oppose it.
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