Wednesday, July 05, 2006

Arizona To Increase Sin Tax


PHOENIX -- "Arizona voters are likely going to have to decide whether to sharply boost the tax on cigarettes to fund programs for early childhood development.
Backers of an initiative drive filed more than 206,000 signatures Wednesday to put a measure on the November ballot to boost the levy by 80 cents a pack."


Arizona voters come November will choose whether to embark on a new government program touted to help underprivileged children. The measure, spearheaded by renowned do-gooders Eddie and Nadine Basha, aims to take a shot at smokers and help poor kids simultaneously. The initiative appears to be a politically brilliant maneuver according to Poffono.
"If the proposition passes, Arizona will get a new entitlement program supposedly free of charge. The majority of Arizona voters do not smoke so the new program won't cost most of us one red cent", Poffrono said. He later predicted, "Since smokers are an easy target and aiding poor children is an easy sell, this measure is likely to pass in November."

Proponents however concede that ultimately the program is self defeating:


One curious element of the measure is that if Basha is successful it actually would mean less money for the programs she wants to finance. That because more people quitting means fewer cigarettes sold -- and lower tax revenues. Basha said, though, that the net growth in state population, both native and migrating from elsewhere, should keep revenues relatively stable for awhile. "We believe we have a 10-year window," she said.



What Then?


Basha said that decade will "prove to the citizens of Arizona these are successful types of programs." At that point, she said, either the Legislature or the voters will have to decide whether to keep financing them.


In other words, it's only a matter of time before we all get taxed. Also, the story did not acknowledge that many Arizona smokers may simply get their smokes from duty free internet sites. Smokers aren't the brightest people in the world but it doesn't take a mathematician to find a way of avoiding the state cigarette tax. When smokers increasingly evade the tax by purchasing elsewhere, the Basha's will likely claim that their social engineering project was a success. They will suggest that a decrease in cigarette tax revenue is attributed to people kicking the habit.
The end result could cause a net reduction in revenue after the state exceeds Smokers' tolerable threshold of punitive tax. Already smokers contribute more than a hundred million to the state annually. Although Basha's plan is fundamentally flawed on many levels, at its source is genuine good intentions. The bashas are generous and have dedicated themselves to promoting child welfare locally. That said; the road to a socialist state is paved with good intentions.

In closing Poffrono issued a tongue and cheek proposal to Nadine Basha.
"Since obesity is a growing health concern for our children, maybe it's time for us fat people to pay our fair share. How about a 20 cent tax on a pint of Ben and Jerry's for starters?"


Fat Kids


Voters may decide new cigarette tax

Smokers Evade State Tax Here

Another way smokers can avoid the silly cigarette tax is to learn how to roll their own. By purchasing tobacco and rolling it themselves, smokers will avoid the tax altogether.

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