After years of not raising taxes on cigarettes, yesterday Mississippi lawmakers approved the second cigarette tax hike this year. Even more surprising, Gov. Haley Barbour, a former tobacco lobbyist who vetoed raising the state's excise taxes numerous times in the past, said he would sign the bill into law.

After a long battle over the details, the Legislature pushed through this year's first cigarette tax increase in May, adding 50 cents to every pack of smokes sold in the state. It was the first such increase since 1985. Now, this second tax adds 25 cents to any cigarettes manufactured by companies that were not part of Mississippi's 1997 lawsuit against big tobacco, reports the Hattiesburg American.

Top lawmakers said the tax of 25 cents on cheaper cigarettes will generate about $8.8 million a year.

That's a small portion of the overall $6 billion lawmakers are scrambling to approve before the state's new fiscal year begins Wednesday. But the threat of having to find $8.8 million of budget cuts pressured some lawmakers, including Democratic Sen. Willie Simmons of Cleveland, into accepting the tax.

Simmons said he feared the cuts would come out of Medicaid, the government health insurance program for the needy.

"I'm going to hold my breath, hold my nose, and I'm going to vote for this bad boy because this is the right thing to do," Simmons said.

The 2010 fiscal year begins tomorrow, and as of this morning, the state still does not have a budget, which may cause some agencies to shut down.

Previous Comments

ID

149152

Comment

See! It gets easier. Next year let's go up a buck a pack, Legislators!

Author

Ironghost

Date

2009-06-30T09:27:24-06:00

ID

149153

Comment

No, let's don't!

Author

BubbaT

Date

2009-06-30T09:28:33-06:00

ID

149155

Comment

Why not, Bubba? It'd certainly raise more money, and let's face it, save lives as well.

Author

Ironghost

Date

2009-06-30T09:33:34-06:00

ID

149157

Comment

Cause cigarettes cost to much already.

Author

BubbaT

Date

2009-06-30T09:55:30-06:00

ID

149161

Comment

You can always quit, right? :)

Author

Ironghost

Date

2009-06-30T10:23:43-06:00

ID

149162

Comment

Nope :)

Author

BubbaT

Date

2009-06-30T10:26:38-06:00

ID

149163

Comment

Oh well. :D

Author

Ironghost

Date

2009-06-30T10:28:34-06:00