October 14, 2007

Oregon Wants an 85-cent-a-pack tax increase

Oregon's Measure 50 will supposedly raise money from an 85-cents-a-pack tax increase on cigarettes to pay for children’s health insurance and other health programs.

Measure 50 will appear on the Nov. 6 ballot, with ballots being mailed next week.

What’s wrong with paying for health care programs with tobacco taxes?

While health care costs continue to rise, tobacco taxes are a declining revenue source. Measure 50’s proponents claim they will decrease smoking among Oregonians and generate enough money to fund a new state run health care program. But because health care costs rise every day, the programs in Measure 50 will eventually outpace the declining revenue from tobacco taxes as people stop smoking, leaving a funding shortfall. If tobacco taxes fall because fewer people smoke, or expected federal funding is not available, Oregon’s taxpayers could face higher income taxes or even a sales tax to make up the deficit.

Vote NO on Measure 50

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