CCAGW Supports Gov. Jindal in Tobacco Tax Fight

Today, Tom Schatz, President of the Council for Citizens Against Government Waste (CCAGW), issued a letter to Louisiana Governor Bobby Jindal in support of his pledge to veto HB 591. A successful veto would allow the Pelican State’s temporary tobacco tax to expire as scheduled in July 2012. The letter reads as follows:

“On behalf of the 13,342 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in the state of Louisiana, I urge you to uphold your promise to veto HB 591, a bill that would extend the four-cent state tobacco tax increase that is set to expire in July 2012. Your position is especially courageous in light of House lawmakers’ veto override threats.

“Since fiscal year 2000, federal and state governments have increased cigarette excise taxes 110 times. Supporters of HB 591 argue that the revenue from the four-cent tax is needed to pay for rising health care obligations. However, history has shown that raising excises taxes does not produce projected revenue, as such tax increases drive purchases to untaxed or lower-tax venues, like Native American territories and the Internet. Of the 57 excise tax increases that states implemented between 2003 and 2007, only 16 met or exceeded revenue targets.

“Furthermore, the Congressional Budget Office has reported that cigarette excise taxes are the most regressive type of excise tax and disproportionately impact the poor and those living on fixed incomes. Any lawmaker who votes to override your veto will be asking Louisianans to hand over more of their hard-earned income, which is even more difficult given these rough economic times. The four-cent tobacco tax increase was meant to be temporary, and its expiration date has arrived.

“Governor Jindal, we applaud you for taking a hard line on this issue and upholding your promise not to increase taxes. CCAGW urges you to swiftly veto HB 591 and remind lawmakers that cutting taxes and wasteful spending, not raising state excise taxes, is the road to fiscal sanity.”

The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.