Well, with 2 new ligislators representing my district (Pilcher-Cook in the Senate and Talia in the House) I could not resist asking them the question about cigarette taxes. As the number of packs sold keeps declining where do they go from here? What will be taxed to replace the goose that is laying the golden egg, or what services will be cut? I also included Sen Steineger in the email.
Anyway, here is the email sent on 2/21/09. I did include the info from the KDOR regarding the tax revenue.
Good morning,
I am sending this to Ms Pilcher-Cook and Mr Talia since your predecessors side stepped the issue and to Mr Steineger because of a conversation a few months ago
While serving on the Shawnee Smoking Task Force I prepared the attached document which became part of the final report. The information is taken directly from the Kansas DOR annual reports.
What it shows is that income from cigarette taxes is declining based on reduced purchases. There was a spike, and that was created by the previous tax increase, and then it declines again. All one has to do is to divide the tax income by the amount of the per pack tax and you will see a substantial reduction in items purchased.
So, my question that your predecessors sidestepped is: What will replace the cigarette tax once the goose that layed the golden egg is gone? In a way Mr Wysong has also sidestepped the issue
If beer was taxed at the same rate the cost of a 6-pack would be astronomical. Anybody ever give any thought to taxing a universal item? Like toilet paper?
Anyway, a few months ago Mr Steineger attended a small breakfast with a little group of ours that gets together bi-weekly. These are not direct quotes but basically he said when it came to raising taxes it was always easier to hit the "sin" taxes (alcohol and tobacco). And that tobacco was the easiest because the number of protesters would not be as great. I really do not see alcohol getting anywhere near the same hit as tobacco.
For the record I was a smoker but quit in January 2006.
Also, so that nobody feels blindsided, a copy of this letter will probably be posted at http://www.shawneeray.blogspot.com . If it is posted there, then any replies I receive will also be posted
