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I received this letter from the Governor of Maine a few months back......Can you all hear my frustration???!!

Darlene--thank you for writing to express your opinion on the proposed
increase in the cigarette excise tax. I would like to share with you my
reasoning for this proposal.

First, I don't like raising taxes; in fact, during my six years as Governor,
we have cut taxes by more than $450 million a year.

However, the decision to increase the excise tax on cigarettes was made in
large part to recover some of the $90 million that tobacco-related illnesses
cost the state-run Medicaid program each year. To me, this makes this as
much a user fee as a general tax.

Since Maine last raised the cigarette excise tax three years ago, tobacco
consumption has declined by 17% and youth smoking rates have declined by
27%. That's a lot of lives that will saved. However, Maine still has high
tobacco consumption, high youth smoking rates and the highest-in-the-nation
young adult smoking rate. All of this has helped to make the Medicaid budget
skyrocket.

Tobacco tax rates as a percentage of the price of tobacco have declined
significantly over the past 30 years. In the 1960s taxes comprised on
average 50% of the price of cigarettes - now that is about 30%.

Finally, cardiovascular disease - much of which is caused by tobacco use
--accounts for many of the 29,000 hospitalizations in Maine and $400 million
in hospital charges each year. In fact, cardiovascular disease is Maine's
leading killer and is closely related to tobacco use. (Which is why we are
now providing expanded cessation services).

This was not an easy decision, but seemed fair, based upon the costs smoking
imposes on everyone in Maine, which everyone - smokers and non-smokers alike
- pays through insurance premiums and general taxes.

While I understand that smoking is a difficult addiction to overcome, and
that taxes are not the most popular subject in a budget year, my final
conclusion was that this increase will partially offset the growing cost of
Medicaid and help to reduce tobacco use in Maine.

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Posts: 846 | Location: Caribou, Maine USA | Registered: Sat August 04 2001Reply With QuoteEdit or Delete MessageReport This Post
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