Lawmakers should consider proposal

Many lawmakers have been stating their opposition to Democratic Gov. Frank O'Bannon's proposal to raise cigarette taxes by 50 cents a pack. But they should realize that O'Bannon's proposal would offset the budget shortfall and allow funding for entities that might otherwise be neglected.\nWith the $923 million budget shortfall that O'Bannon announced last week, lawmakers are trying to figure out where that money can be recovered. In early proposals, higher education funding has suffered. \nThe School of Informatics is just one example of a program that would suffer. It is in its beginning stages, when it needs extra support to succeed. Purdue's nanotechnology project would receive equal funding. These projects would help to make Indiana more attractive on the high-tech job market, a direction in which the state has been trying to move. The state must be willing to help lend its support to accomplish this goal, and the money to do so must come from somewhere.\nThe governor estimates the state will generate $650 million from cigarette taxes in the next two years. The state could then increase funding for K-12 and higher education by 4 percent during those two years. This would allow for inflation, something for which other proposals have neglected to provide.\nThe current tax is 15.5 cents per pack, which means O'Bannon is proposing to almost quadruple the tax. But this is a necessary step to take when looking at the big picture of all the Indiana programs that need funding. \nSome lawmakers say because of the sharp tax hike, people would stop smoking. The Washington-based Campaign for Tobacco-Free Kids released a study Tuesday that could give O'Bannon a little leverage. The study said higher cigarette prices help keep young people from beginning to smoke in the first place. \nWhile some smokers might quit, not enough will do so to make a difference in the total revenue generated. The cigarette taxes can be counted on for a steady source of income.\nAnd this is the first tax hike since 1987. People have been paying the same tax for more than a decade and should start doing their part to look at the big picture. \nNobody likes a tax hike, because it means government is taking more of our hard-earned money. But these programs need funding, and there is no money to give them funding. The cigarette tax hike would provide some of that funding. It's that simple. \nIn general, luxury goods carry a higher tax. The philosophy is that if consumers have money to spend on an unnecessary item, they can chip in a few cents for the greater good. Cigarettes are no exception. When compared to raw income, food and property, a pack of Marlboro lights hardly seems necessary. \nRepublicans dominate the Senate, and Democrats have not been quick to lend support, either. And there are 16 counties in Indiana that produce tobacco. Lawmakers are saying the proposal has no chance. \nBut the cigarette tax increase is a way for Indiana to move forward -- to get some of the money it needs -- and lawmakers should not be so quick to shoot it down.\nStaff vote: 10 - 5 - 0