Freedom Works.org takes issue with Kentucky's proposed cigarette hike.
A political action group chaired by former Representative, Dick Armey, has put out a press release taking issue with Kentucky's proposal to increase cigarette taxes.
The group urges Kentuckians to "Instead of relying on such a discriminatory and unreliable source of revenue, the Governor should roll back regulations and rein in spending. This is the surest way to bring economic growth to the Bluegrass State."
Here's an email I received from the group's rep.:
There are a lot of problems with the tax hike.
It is a regressive tax - a tax that creates a much higher burden on one part of a population - a very small part of the population. And in this instance, there isn't even the usual "cigarette tax for health care" caveat that so many governments foolishly try to throw in - saying that smokers raise the cost of health care so they should shoulder the tax (a falacy because smokers usually die earlier than non-smokers who live forever at soaring costs....).
It isn't fair to make one small portion of Kentuckians fill a budget gap. And statistically, these are going to be among the poorest of the population. The tax is a much higher proportion of their income compared to someone earning more and suddenly you have a small group of poor people paying for Kentucky's past spending mistakes?
Historically, increased cigarette taxes haven't worked - they don't bring in the promised revenue and even as legislators say this tax will discourage smokers and bring in XXX dollars, the promised revenue usually requires ever increasing numbers of smokers. The math doesn't work. It might discourage smokers, it might send others to the black market, but the promised funds won't be there.
Fiscal discipline, making cuts, however difficult they may be - is a much better path for Kentucky to take. Rolling back regulations would bring businesses and growth to the region - making the state work better for everyone.
I hope that answers your question. If you have more, I'd be happy to try to answer them. I'm not an economist - though we have one on staff - Dr. Wayne Brough - I just try to explain the data.
Have a great day,
The group urges Kentuckians to "Instead of relying on such a discriminatory and unreliable source of revenue, the Governor should roll back regulations and rein in spending. This is the surest way to bring economic growth to the Bluegrass State."
Here's an email I received from the group's rep.:
There are a lot of problems with the tax hike.
It is a regressive tax - a tax that creates a much higher burden on one part of a population - a very small part of the population. And in this instance, there isn't even the usual "cigarette tax for health care" caveat that so many governments foolishly try to throw in - saying that smokers raise the cost of health care so they should shoulder the tax (a falacy because smokers usually die earlier than non-smokers who live forever at soaring costs....).
It isn't fair to make one small portion of Kentuckians fill a budget gap. And statistically, these are going to be among the poorest of the population. The tax is a much higher proportion of their income compared to someone earning more and suddenly you have a small group of poor people paying for Kentucky's past spending mistakes?
Historically, increased cigarette taxes haven't worked - they don't bring in the promised revenue and even as legislators say this tax will discourage smokers and bring in XXX dollars, the promised revenue usually requires ever increasing numbers of smokers. The math doesn't work. It might discourage smokers, it might send others to the black market, but the promised funds won't be there.
Fiscal discipline, making cuts, however difficult they may be - is a much better path for Kentucky to take. Rolling back regulations would bring businesses and growth to the region - making the state work better for everyone.
I hope that answers your question. If you have more, I'd be happy to try to answer them. I'm not an economist - though we have one on staff - Dr. Wayne Brough - I just try to explain the data.
Have a great day,
Labels: General information
posted by KYJurisDoctor at 1:26 PM
2 Comments:
So...what regulations should be rolled back, what economic impact would that have, and what impact on Kentuckians would it have?
Good questions, Jean, I'll ask them.
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