R. J. Reynolds Backs Campaign Against Tobacco Tax Hike

Cigarette tax proposal would change tax from 7 cents per pack to 30-50 cents if the plan passes.

However,  the country’s second-largest cigarette company is an anonymous backer of a campaign opposing a bill to raise South Carolina’s lowest-in-the-nation cigarette tax.

The message began showing up in mailboxes last week — 10,000 postcards sent to Republican activists by the S.C. Association of Taxpayers.

The postcards express concern about a proposed plan to raise the state’s cigarette tax, now 7 cents per pack, to between 30 and 50 cents per pack.

Some legislators have suggested the new tax revenue could go toward providing employers tax credits to buy employee health insurance.

Featuring a graph showing a “$190 million unfunded taxpayer mandate,” the postcards ask voters to “stop this HillaryCare styled welfare plan.”

Several state Senate staffers said the chart on the postcards is the same chart that R.J. Reynolds lobbyists showed some state senators in recent weeks. The postcard also warns that the “hospital industry and insurance company special interests want Legislators to raise your taxes!”

“We just have issues with what they’re talking about,” said Don Weaver, president of the S.C. Association of Taxpayers. “A lot of people don’t realize what this program will do.”

The association is a private group that often takes corporate donations, Weaver said. The group is best known for giving out its annual “Friend of the Taxpayer” award.

Supporters of the insurance plan, known as the “Covering Carolina Collaborative,” say the postcards distort the plan to expand health insurance options in the state and its cost.

“We got some donations,” Weaver said, when asked if R.J. Reynolds paid for the postcards. “We get a lot of corporate donations, let’s put it that way.”

R.J. Reynolds declined to comment for this article.

Tax MapIn past years, R.J. Reynolds was at the forefront of the cigarette-tax debate, hosting events and urging those opposed to increasing the tax to call lawmakers. R.J. Reynolds’ views are different from that of the top-selling cigarette maker, Philip Morris USA, which supports a small tax increase.

Supporters of raising the tax to provide health insurance, including the S.C. Hospital Association, said the postcards misrepresent the proposal.

Patti Smoak, spokeswoman for the S.C. Hospital Association, said the options offered in the Covering Carolina Collaborative would depend on the state’s ability to pay for them.

Although the hospital group is not advocating a cigarette tax hike, it is logical that smokers help pay health care costs caused by smoking, Smoak said.

It is unclear when the Senate will vote on the tax, which has not been increased since 1977.

Source: John O’Connor The (Columbia) State

One thought on “R. J. Reynolds Backs Campaign Against Tobacco Tax Hike

  1. Anita

    Where were you when they just raised the cigarette tax in NY another $1.50 per pack?
    That’s unfair,
    Here’s your opportunity to stop giving to New York State.
    The state should be sued for unfair taxation

    Reply

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