Lawmaker, lobbyist debate tobacco tax measure

A lobbyist and a lawmaker spent an hour yesterday trying to convince University of Missouri students how to vote on the upcoming tobacco tax increase. At a forum sponsored by the Missouri Students Association, state Rep. Chris Kelly at times made it sound like a vote against Proposition B would be a vote against MU. "You can't be pro-education and anti-B," he told roughly 50 students in the audience.

"If you care about the value of your degree and care about this institution, which is desperate for the resources, this is the only game in town." Ron Leone, executive director of the Missouri Petroleum Marketers and Convenience Store Association, pooh-poohed that notion, saying there are fairer ways to fund public education. "Proposition B is too big, and it's too dangerous for Missouri," he said. Missouri's 17-cent tax on a pack of cigarettes is the lowest state tobacco tax in the country. On Nov. 6, Missourians will be asked to increase that rate by 73 cents.

If approved, the 90-cent state tax would be on top of a $1.01 federal cigarette tax. The ballot question would essentially raise taxes on off brands by 760 percent, Leone said. "If you let the tax-and-spend folks raise taxes by 760 percent for something you don't like, don't be surprised if it emboldens them to go after something you do like, like beer." If approved, half of the revenue from the increase would go to public K-12 schools, 30 percent to higher education and 20 percent would be used for smoking-cessation programs.

Kelly argued the increase would require smokers to help pay for some of the tobacco-related medical care the state funds through Medicaid. But none of the revenue would be spent directly on smoking-related health care, Leone pointed out, nor is it likely to decrease Medicaid expenses. The ballot language does direct the bulk of the higher education portion to health care training. MU Chancellor Brady Deaton has said he would use revenue from the tax hike to expand medical school facilities to open more slots for students. "I'd rather have a few more nurses and a few less cigarettes," Kelly said.

Leone warned that the tobacco tax increase would put Missouri's rate higher than four border states, and Missouri would lose out on business from out-of-state residents who now drive across state lines to buy smokes here. Those people also buy gas, food and other goods that generate local sales taxes. He pointed to an economic impact report from an MU economist that says communities could lose $67 million if the tax is approved. Asked whether the tax would disproportionately hurt poor people, Kelly said "Yes, and I don't mind that."

Later, he called tobacco poison and said: "If you're selling something that's poison, it's reasonable for a society to assess taxation at a level different than lemons." Neither was able to sway freshman Kimberly Hejza. She said both made good points, but she needs to do more research before deciding how to vote. Sophomore Ana Whitaker said she supports Proposition B. "Definitely," she said. "I really believe in higher education, so it seems logical for me to vote for it."