News -> INDReporter TUE, JUN 14 10:28AM by Walter Pierce

Veto showdown looms over cig tax

Gov. Bobby Jindal followed through with his promise to veto the renewal of a 4-cent state tax on cigarettes, characterizing it as a new tax. It was an existing tax set to expire, but that’s just semantics. Now we’ll see if Jindal can marshal his formidable power of persuasion (read, threaten to block public works projects) with some within the overwhelming majority of Republican lawmakers in both the Senate and House who voted for the renewal. Jindal only needs to peel off a few — literally one from the House and four from the Senate — to prevent an override of his veto.

Lawmakers, especially within the GOP, are in something of a pickle: While the tax only generates $12 million annually, that’s still $12 million that will have to be cut elsewhere if the tax is not renewed through a veto override. Any lawmaker who voted for the renewal and then wilts under pressure from the governor’s office — Jindal has called the veto “personal” and has appeal to his fellow Republicans to back him — is agreeing to cut $12 million from the budget in order to lower the price of cigarettes. How do you spin that with voters back home?

As columnist James Gill observed about Jindal in Sunday’s Times-Picayune:

[T]he principle on which he has elected to stand is a highly perverse one, and his main concern remains himself. ...Jindal, in his quest to lower the price of cigarettes in Louisiana, is not only bucking public opinion but setting himself up to be the first governor in decades to suffer the indignity of a legislative override. He is evidently willing to pay the price of maintaining an anti-tax stance even when it defies all reason. Say tax, and Jindal will jump up and shake his head. Pavlov would approve.

Today’s Advocate has more on the veto and possible override, as well as a link to a 1997 article Jindal, then secretary of the state Department of Health and Hospitals, penned for the Louisiana State Medical Society calling for higher sales taxes on cigarettes to offset the cost of health care for smokers. Jindal on Monday declined to comment on the article or what his apparently his ideologically driven one-80 on the issue.


Walter Pierce
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Comments (11)add
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written by ragin_cajun , June 14, 2011 - 04:05 pm
"read, threaten to block public works projects"

What? Is there something wrong with that?
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written by The Holy Goofus , June 14, 2011 - 06:14 pm
Jindal: "The pro-smoking governor".
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written by Unempirical Observer , June 14, 2011 - 08:36 pm
Maybe just as soon as Gov. Jindal is willing to fight for an end to the 4 cent state sales and use tax on non-prescription medication, natural herbal healthcare supplements, pet food, clothing and a litany of other things the state assesses a 4 cent sales and use tax on. I don't expect him to do so.

Ragin Cajun, frankly, the Governor's logic and your logic are ridiculous. A continuation/renewal is not an increase of rate by any standard. I challenge you to find a way to spin this. It may be possible, but any common understanding of the matter will say the opposite.
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written by Bob D. , June 15, 2011 - 12:14 am
We are bombarded by claims that even slight exposure to second hand tobacco smoke is deadly. It only takes a simple examination of the facts to debunk this fallacy.
''The abuse of scientific integrity and the generation of faulty "scientific" outcomes (through the use of pseudoscience) have led to the deception of the American public on a grand scale and to draconian government overregulation and the squandering of public money.''
remember - Typically, the amount of tax assessed is not reasonably equivalent to the fair market value of the services provided. One important reason that this is true is because the amount of tax that is assessed is not negotiated between "buyer" and "seller" in a free market. Both overcharging and underpaying for goods or services makes one party a thief and the other party the victim of a crime. The tax in question is legally about to expire; renewing requires a new law and therefore it is a new tax.


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written by ragin_cajun , June 15, 2011 - 02:41 pm
UO --

I can't say it any better than Bob did, so I'll just quote his response.

" The tax in question is legally about to expire; renewing requires a new law and therefore it is a new tax."

I challenge YOU to find legal recognition of the concept of a "tax renewal" in State Law, State Constitution. There is none.

So describe exactly how my logic is ridiculous.
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written by NotSurprised , June 16, 2011 - 03:04 am
this is a pi$$ing match for the governor. Why would he not want to renew a tax collected already. I can see opposing a new tax. collect the 4 cents & use it for health care. I just read an article that put taxes on a pack of cigs that made it $11. That number sounds good to me! Four cents is like stupid cheap to be arguing about. I think its just smoke & mirrors on Jindals part. I KNOW HE'S A SMALL MAN, I JUST DIDN'T REALIZE HE WAS SO SMALL IN CHARACTER ALSO, that he'd vindictively interfere in public works projects.
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written by NotSurprised , June 16, 2011 - 03:10 am
threateing to block public works projects, its wrong, its petty, its a lack of integrity and intelligence

No one is going to commend the governor for being vindictive. No one is going to commend Jindal for fighting over a 4 cent cig tax renewal. If he raised it to $4 tax, he might get some approval attention. If Jindal has aspirations politically, he ought to make Louisiana a great state so he could point to his accomplishments and tell the nation he can do that for the U.S. Fighting a 4 cent cig tax renewal isn't going to garner him any national admiration.
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written by ragin_cajun , June 16, 2011 - 11:43 am
Maybe he actually BELIEVES it's wrong to raise taxes. Maybe he thinks it's wrong for gov't. to regulate individual habits and customs like this. Maybe Jindal doesn't care whether a person smokes or not.

As for making La. a great state, I look around at our neighbors, and Texas is the state I see doing best economically, educationally, and culturally. If we started governing La. like Texas, y'all would howl like 2 year olds.
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written by rambeaux rawlings , June 16, 2011 - 02:02 pm
It's too late to start governng like Texas. Years ago they dedicated mineral revenue to higher education and now they have one of the best public university systems in the country and all the economic activity that creates. LA, instead, used severance taxes to avoid civic responsibilty in the form of necessary taxation and now we have a governor and thousands of people like "ragin cajun" believing all taxes are bad and undervaluing education, while living in a state that has become "The Smokers'Paradise."
As for "howling like two-year olds," it beats listening to whining adolescents.
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written by Notsurprised , June 16, 2011 - 03:05 pm
How many Louisianas fit into a state the size of Texas??? How many oil wells and natural gas lines does TX collect revenue on? Try taxing those in Louisiana and see who howls??? But one thing is correct, I'll howl the moon down if you try to tax my home more. My homestead exemption & my testicles; they're all I have left that's not taxed.
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written by ragin_cajun , June 16, 2011 - 03:40 pm
I'm pretty sure I've read that Texas Colleges are among the LEAST subsidized by taxes. That is why their tuition is so much higher than La.'s colleges.

As for the value I place on education....I value it very highly. Thats why I worked so hard to pay for mine. Right here in Louisiana, too. Just like everyone else can do, too.

But, if you think I should now pay higher taxes to pay for government-run educational boondoggles, then go ahead and elect more tax and spend LSU law alumni to the legislature and have them
Raise taxes on me "for the good of all", for "better education". That'll surely spur more economic growth..,in Texas.

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