AARP Backs Idaho Cig. Tax Hike

Says Increase Marks Needed Approach to Budget Challenges, Urges Lawmakers to Consider Similar Proposals to Stave off Cuts to Critical Programs & Services

BOISE, Idaho, Jan. 7, 2011 /PRNewswire-USNewswire/ -- With a bleak state budget outlook for the upcoming Idaho legislative session causing concern about cuts to critical programs and services, AARP today praised efforts being led by Rep. Dennis Lake and American Cancer Society Cancer Action Network to increase the state's tobacco tax as a creative and needed approach to the problem.  AARP is urging lawmakers to consider similar proposals to help stave off expected cuts.  

"AARP commends Representative Lake for standing up during difficult times with an approach to bring more money into critical Idaho programs while helping to reduce the number of young smokers in our state," said Jim Wordelman. "We hope, given the tough budget times expected in the coming session, these types of proposals will see widespread support in the legislature."

The $1.25 tobacco tax hike would bring roughly $50 million in revenue, providing additional money for Medicaid and leaving less room for cuts that could take harsh toll on children, families and the elderly - groups who've been increasingly reliant on Medicaid due to worsening household finances.  In Idaho, nearly 30% of children receive care under Medicaid, while 23,000 of low-income elderly in Medicare (known as dual eligibles) also count on the program for critical health care.

"More cuts to education and health care in Idaho would have a dire effect on Idaho families," added Wordelman.  "It's time to get creative in ways that don't just call for more cuts, and AARP is looking forward to working with legislators to do just that."

AARP is calling on state legislators to look at more options for revenue, as opposed to just making increasingly harsh cuts that impact resident's health care and education.  

AARP supported options for state revenue include:

• Implement an automatic tax on sales made over the internet, to match the 6% sales tax on goods purchased from traditional brick-and-mortar stores in the state.  Currently, Idaho relies on consumers to voluntarily report their purchase made on-line and pay the sales tax losing roughly $30 million a year in revenue.    
• Review all of the state's sales tax exemptions this legislative session, and provide a "sunset" or expiration date for each.  Currently, tax exemptions cost Idaho roughly $1.8 billion in revenue each year, many were enacted in 1965, and none of the exemptions have an expiration date.

Idaho has the 42nd lowest tobacco tax in the nation and the lowest in the region.  In addition to decreasing youth smoking, cigarette tax increases have proven to be a reliable source of revenue.  Tobacco tax increases have helped states across the nation fund critical health care programs.

AARP is Idaho's largest membership organization with 180,000 members.

Follow us on Twitter @AARPIdaho and Facebook: AARP Idaho

SOURCE AARP Idaho

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