Maryland May Increase Tobacco Tax to $2 Per Pack September 10, 2007
News Summary
Facing a budget crisis, the Maryland government is considering raising the state tobacco tax to a total of $2 per pack, the Baltimore Sun reported Sept. 8.
"I do think there is the will to raise the tobacco tax. We will probably see some sort of increase," said Gov. Martin O'Malley, who also has raised the prospect of an increase in the state sales tax. Maryland currently has a $1.5-billion budget gap that needs to be addressed.
This spring, the state House of Delegates approved a $1-per-pack tax increase to expand Medicaid, but the Senate failed to pass the measure. O'Malley suggested that the tax money should be used to raise about $220 million to mend the budget.
Maryland's current tobacco tax is $1 per pack. "We commend Governor O'Malley for expressing support for the $1 tobacco tax increase," said Vinnie DeMarco, president of the Maryland Citizens' Health Initiative. "By itself, it will keep 50,000 kids from smoking, save thousands of lives from tobacco-caused deaths and save the state billions of dollars in health care costs."
Republican lawmakers, however, say they will oppose any tax increases, saying controlled spending plus revenues from gambling would balance the budget.
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