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Does The Cigarette Tax Hike Kill The House GOP Roads Plan?

By Network Indiana

Posted February 22, 2016

The House GOP's road funding proposal includes a cigarette tax hike that some say may sink the idea's chance of passing.

House Republicans say their cigarette tax hike doesn't really pay for roads; it would go to Medicaid to free up that money for roads.

But opponents of the bill say that feels like a stretch. And while anti-smoking groups argue even tax hike opponents should support this one as a public-health measure, Senate President Pro Tem David Long says you can't separate the tax hike from the road repairs it's intended to pay for.

"We have to find more long term permanent funding for the roads that's one of the reason why the senate think we need more talk. We need more time to get our heads around what it's going to take to invest in our roads in such a way that not only can we invest in our most important projects, but we have a sustainable source of revenue."

Long says it's a mistake to rely on funding that's designed to go down as more smokers quit. House Minority Leader Scott Pelath notes he's voted for cigarette tax increases in the past, but says the House Republican proposal needs to be reviewed very carefully.

"There's a lot of major positive increases that can be done for infrastructrue that don't require any new taxes. We have to remember we have to get this thing around the governor. They don't talk about him enough. And we have to remember he has that veto pen and I thought he was pretty clear in his State of the State."

And he notes Governor Pence appeared to rule out any tax increase in his State of the State address.

Health groups claim the one dollar-a-pack increase would prevent 41,000 deaths from smoking-related illnesses.

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Does The Cigarette Tax Hike Kill The House GOP Roads Plan?

By Network Indiana

Posted February 22, 2016

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