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Monday, Oct 7, 2024

Cigarette Tax Proposition Drawing Business Opposition

The way Providence Holy Cross Medical Center Chief Administrator Kerry Carmody sees it, Proposition 86 a measure on the Nov. 7 ballot to almost triple the tax on cigarettes to fund, among other things, emergency care will benefit everyone, smokers and non-smokers. “It’s a user tax,” he said. “If people don’t smoke, they won’t feel it other than they’ll potentially have better coverage in the emergency room when they show up for care, which is where this money is designated to go to.” If passed, the measure would apply an additional tax of $2.60-per-pack on cigarettes to pay for health insurance for children, emergency care and anti-smoking programs. The new tax, which would take effect Jan. 1 and bring the total tax on cigarettes to $3.47 per pack, is expected to generate $2.1 billion annually. But a look at the proposition shows that the vast majority of funds outlined in the measure will actually go towards funding hospitals and health programs not directly related to either treating the medical affects of smoking or preventing the habit. About 52 percent of the cash or $1.02 billion per year will be divvied up to pay for health treatment and services, of which $756 million will pay for hospital emergency and trauma care, $91 million for nursing education programs and $58 million for nonprofit clinics. Only 1.75 percent $18 million will fund tobacco cessation services, according to a July breakdown of the proposition by the Legislative Analyst’s Office. About $810 million of the money generated from the tax will go towards another category for health programs and health insurance, but only about 21 percent $171 million will fund programs directly related to smoking. Five percent of the total fund will pay for health and disease research, about $95 million, with the remaining $180 million backfilling the California Children and Families First Trust Fund. That type of disparity is one of the major reasons Proposition 86 has drawn criticism. Some think the measure forces smokers who make up just 14 percent of the population in California to unfairly pay for the care of others. Some business groups and chambers of commerce also worry the new tax will decrease how many packs are sold. “We feel it will be overly burdensome to consumers. It’s so excessive,” said Gary Olson, executive director of the Burbank Chamber of Commerce, which opposes Prop. 86. “It’s not that we’re advocates for smoking, don’t get me wrong,” said Olson, who is a non-smoker. “We just think the amount is pretty steep.” Others in opposition include the Thousand Oaks-Westlake Village Regional Chamber of Commerce, Woodland Hills Chamber of Commerce and United Chambers of Commerce of the San Fernando Valley. It is also causing concern from hospital officials who say voters may see the proposition as a one-time solution to a complex problem. “My concern is that if Prop. 86 passes, then the public says, ‘We just took care of the hospital problem,” said Albert L. Greene, president and CEO of Valley Presbyterian Hospital in Van Nuys. “Prop. 86 is not an entire fix.” BUSINESS-RELATED MEASURES The Nov. 7 election includes a variety of local and statewide ballot measures that, if passed, would directly affect the business community. Here’s a brief look at the most significant; for a more detailed examination before Election Day, log on to smartvoter.org: Statewide Propositions 1A-1E: Borrowing measures to fund improvements to the state’s public works infrastructure by limiting the spending of gasoline taxes only to transportation projects (1A), borrowing $19.9 billion to pay for transportation projects (1B), borrowing $2.8 billion to build affordable housing (1C), borrowing $10.3 billion to build schools (1D) and borrowing $4.1 billion to build levees and other flood control devices (1E). Proposition 84: Sell $5.4 billion in bonds to pay for water supply, flood control, levee and park projects and the protection of wildlife, habitats and coastlines. Proposition 86: Increase the current $0.87 tax on packs of cigarettes to $2.60 to raise an estimated $2.1 billion to fund hospitals, anti-smoking programs and research. Proposition 87: Create a $4 billion “clean alternative energy program” by taxing crude oil harvested from California lands. The funds would pay for research and development of alternative fuels. Proposition 90: Revise what private properties governments are allowed to seize and require governments to pay property owners for substantial economic losses resulting from new rules and laws. Local Los Angeles Measure H: Authorize $1 billion in bonds to fund affordable housing projects and increase property tax bills by $14 for each $100,000 of assessed value. Two-thirds required to pass. Measure R: Change the city charter to increase the current two-term limit on City Council seats to three terms and restrict lobbyists from making campaign contributions or becoming commissioners. Two-thirds required to pass. Santa Clarita Measure M: Issue $160 million in bonds by charging homeowners about $9.73 per $100,000 of a property’s assessed value to pay for upgrade or add classrooms to College of the Canyons in Valencia. Fifty-five percent required to pass.

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