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Miss. Governor Agrees to Tobacco Tax
November 21, 2008

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News Summary

A recommendation to raise the tax on cigarettes in Mississippi from 18 cents to 42 cents per pack has received support from the governor's office, the Jackson Free Press reported Nov.18.

"I had said last year, and again this year when I created the Tax Study Commission, that if the commission should propose a tax increase on tobacco that I'd pass it along to legislators, and that's contained in this budget," said Gov. Haley Barbour, a former tobacco lobbyist. Barbour said that he considered the tax increase "a health issue."

However, "If you're really looking to discourage smoking, the tax needs to be $1 or more," said Roy Mitchell, director of the Mississippi Health Advocacy Program. "Anything less is nothing more than a friendly wink to tobacco companies," Mitchell added.

The $84 million expected to be generated as a result of the tax increase will be put into the state's general fund, with some of the money earmarked to cover budget gaps in Mississippi's Medicaid program.

The tax increase followed an announcement that the state would need $41.9 million in budget cuts for fiscal year 2009. The governor said that the cuts will not affect funding for most health and education programs.

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