State tobacco tax may double

By Kevin Dayton
Advertiser Capitol Bureau Chief

House lawmakers gave preliminary approval yesterday to a bill to double the state's tobacco tax to $2 per pack, a move that would make Hawai'i's tax the highest in the nation.

House Health Committee Chairman Dennis Arakaki said the bill would discourage teenagers from smoking by making cigarettes more expensive, and would raise $35 million to $40 million a year to help balance the state budget.

The bill would also require that about $5 million a year of the extra tobacco tax money be used to help pay for anti-smoking educational programs for youngsters, said Arakaki, D-28th (Kalihi Valley, Kamehameha Heights).

"There's two things working in this bill," Arakaki said. "One to hit their pocketbook, and one to educate them and hopefully convince them smoking is not a good idea."

That reasoning didn't convince Republican Rep. Bob McDermott, who said the bill amounts to a regressive tax increase that will hurt the poor, and would boost the total cost of cigarettes to more than $5 a pack.

"I don't smoke, and I don't like smoking, I think it's a nasty habit, but it's just a money grab, that's all it is," McDermott said of the bill. "Poor people are still going to smoke."

McDermott, R-32nd ('Aiea-Salt Lake-Aliamanu), also questioned the need for additional educational programs, arguing that people are "brain dead" if they don't know smoking causes cancer and other health problems.

"You think raising the price is going to stop people from smoking? When they want that nicotine fix, they'll do whatever they can," he said.

With the state facing a budget of more than $300 million over the next two years, Arakaki said lawmakers need to either raise more money, or they will have to cut education, health and human services budgets.

"It doesn't target Joe Six Pack," Arakaki said. "If we were to poll the general public, I don't think we'd get much opposition to this type of tax."

House Bill 2741 was approved on the second of three required votes, with only 12 Republicans voting against it. The bill goes to the House Finance Committee for further consideration.

Hawai'i and Alaska have the second-highest tobacco taxes in the nation at $1 per pack. Washington state's cigarette tax is the highest in the nation at $1.425 per pack as of Jan. 1

McDermott, R-32nd ('Aiea-Salt Lake-Aliamanu), also questioned the need for additional educational programs, arguing that people are "brain dead" if they don't know smoking causes cancer and other health problems.

"You think raising the price is going to stop people from smoking? When they want that nicotine fix, they'll do whatever they can," he said.

With the state facing a budget of more than $300 million over the next two years, Arakaki said lawmakers need to either raise more money, or they will have to cut education, health and human services budgets.

"It doesn't target Joe Six Pack," Arakaki said. "If we were to poll the general public, I don't think we'd get much opposition to this type of tax."

House Bill 2741 was approved on the second of three required votes, with only 12 Republicans voting against it. The bill goes to the House Finance Committee for further consideration.

Correction: Washington state's cigarette tax is the highest in the nation at $1.425 per pack as of Jan. 1. A previous version of this story was incorrect.