Proposition A would increase tax on tobacco products: Anti A

324 percent tax increase would affect all Missourians

Enough is enough! Here are four of the more obvious reasons to vote against Proposition A on Nov. 5.

First, Proposition A increases the Missouri tax on cigarettes by an outrageous 324 percent. Are the proponents of Proposition A's oppressive 324 percent tax increase attempting to tax a lawful product out of existence? What's next on their list alcohol, fast food, firearms or something that you really care about?

Second, don't let the proponents fool you into thinking that Proposition A taxes will be used to treat tobacco-related disease or illness.

Only 7 percent of the $343 million per year Proposition A is estimated to generate will be used for anti-tobacco and anti-smoking efforts. Astonishingly, the remaining 93 percent, or $319 million per year, is not required to be spent on tobacco-related diseases or treatment and instead will be deposited in "health care," "life science" and "day care" accounts that will: expand welfare programs and bureaucracy; expand Missouri's $19 billion budget which has already more than doubled in the last decade; and most tellingly, benefit big business by profiting the very corporate entities that have bankrolled the massive Proposition A tax increase HMOs and other health insurance groups, hospitals, drug and research companies, physicians and dentists.

Why else would Proposition A's biggest corporate proponents, who stand to reap the vast majority of Proposition A funds, be willing to spend $3-plus million of their own money to persuade voters to approve Proposition A? The answer is simple greed.

Missouri's health care crisis is a statewide dilemma requiring a statewide solution. Attempting to partially address a statewide health care crisis by taxing the 27 percent of the population that smokes is both cowardly and unfair. In addition, Proposition A does not require a regular financial audit and thus lacks any significant taxpayer accountability.

Third, are you a nonsmoker who doesn't think that Proposition A will increase your taxes? Think again.

The funds generated from Proposition A's 324 percent tax increase will inevitably be reduced because people quit smoking, or tobacco consumers decide to purchase their tobacco products over the Internet, in neighboring states with lower taxes, on the black market, or on Native American lands. Once that happens, who do you think will have to pay for the never-ending $343 million in additional welfare programs and bureaucracy created by the massive Proposition A tax increase? You guessed it all Missouri taxpayers.

Dr. Ed Robb, director of the University of Missouri's Economic and Policy Analysis Research Center, estimates that Proposition A will decrease primary and secondary public school funding by more than $10 million per year.

How exactly are Missouri's taxpayers going to make-up this $10 million yearly deficit?

Fourth, increasing taxes in a sluggish economy is ridiculous fiscal policy. Proposition A's oppressive 324 percent tax increase will put Missouri tobacco retailers at a competitive disadvantage with six of our eight border-states that will have lower tobacco taxes. Proposition A provides a financial incentive for tobacco consumers to purchase tobacco products, and other tax-generating items, in lower-taxed border-states, on lower-taxed Native American lands, on the black market, and over the Internet which typically does not charge or collect taxes.

It's really quite simple Proposition A's 324 percent tax increase will decrease Missouri-based tobacco sales. This loss of sales may result in a decrease in tobacco and sales tax revenue for the state and lost Missouri based jobs.

Enough is enough on Nov. 5 vote against Proposition A!

Ronald J. Leone

Executive vice president

Missouri Petroleum Marketers & Convenience Store Association