Raising tax on tobacco up to voters.

Byline: GREG BOLT The Register-Guard

It's either all about health or it's all about fairness. Unless, of course, it's all about money.

Measure 20 can be any of the three. The proposed 60-cents-per-pack increase in the state cigarette tax would discourage some people from smoking and at the same time raise an estimated $67 million for the state by essentially increasing taxes for the 20 percent of Oregonians who smoke.

Voters will decide whether that's a good idea when they vote on the measure in the Sept. 17 mail ballot. It's one of two budget measures referred to voters in a June special legislative session sparked by the recession's continuing drain on state revenue.

The text of Measure 20 fills up three columns in the state voters' pamphlet, but the basic idea is straightforward. It increases the cigarette tax from 68 cents per pack to $1.28 per pack, putting it among the highest in the nation.

The tax would kick in on Nov. 1, bringing in just more than $70 million in the remainder of this fiscal year. Of that, $67.3 million would be used to help support the Oregon Health Plan, which pays the medical bills of low-income Oregonians, $2.5 million would go into anti-smoking programs and $945,000 would go to cities and counties and for disabled and elderly transportation programs.

The tax actually would raise $500,000 this year for anti-smoking programs, but that amount would rise by an additional $2 million that usually would be earmarked for the health plan. Once the measure is in effect for a full year, the annual revenue would be $111.6 million for the health plan, $1.5 million for cities, counties and transportation and $750,000 for anti-smoking programs.

The measure appears to enjoy broad support. Polling by the Tobacco Free Coalition of Oregon several months ago showed about two-thirds of voters favoring a cigarette tax increase, and the measure is supported by all the major health lobbies in the state.

Maura Roche, a spokeswoman for the coalition, said the tax does two things: It raises money for health care and smoking prevention, and it provides an incentive for people - especially young people - not to start smoking and for current smokers to kick the habit.

"It improves health and it saves lives," Roche said.

The coalition estimates that over the next 20 years the extra tax would stop 15,000 young people from becoming smokers.

That's not how everyone sees it, however. The tobacco lobby, small business groups and convenience store owners oppose the measure on grounds that it unfairly taxes a minority group to pay for programs that benefit the majority of Oregonians.

Chris Girard, president and CEO of Plaid Pantries Inc., believes the cigarette tax is undemocratic.

"It's just an easy thing to do, because the majority of people don't smoke and many of those don't like tobacco or people who do smoke," he said. "I think it's bad tax policy."

Others see it as a dollars-and-cents issue as well. The Oregon Neighborhood Store Association argues that the tax would cost stores $45 million in lost profits and the loss of 700 jobs, at a time when small markets are facing increasing competition from "big box" retailers and chain grocery stores.

Anti-tobacco advocates don't buy that argument. For one thing, Roche said, studies have shown that when people stop smoking, the dollars they would have spent on cigarettes usually are spent on food and other retail items.

As for the potential loss of jobs, Roche said smoking now costs the country billions of dollars in lost productivity and time lost to illness. Figures from the Centers for Disease Control and Prevention indicate that each pack of cigarettes sold results in $7.58 in smoking-related costs.

Reducing the number of smokers would save money by reducing health-care costs and time lost to illness, Roche said. And she rejects the argument that the tax would be self-defeating because a decline in smoking would mean a decline in cigarette tax revenue.

She said every state that has increased cigarette taxes has seen an increase in revenue in spite of accompanying declines in smoking and cigarette sales. And she said it's clear that higher taxes do discourage smoking.

Documents produced in response to smoker lawsuits show that tobacco companies themselves have documented declines in smoking related to higher prices.

"That's in their own internal documents and their own words," Roche said.

Girard said he thinks the state will lose business because smokers in neighboring states, primarily Washington, no longer will have an incentive to drive across the border to buy cigarettes. And he said small stores that specialize in cigarette sales will be hurt, especially those along the Columbia River.

"They're probably toast," he said.

Supporters of the measure said the health and economic benefits from reduced smoking far outweigh any such costs. They acknowledge that high cigarette taxes aren't the whole answer to the smoking issue but contend that they play an important role.

"I would say it's an appropriate way to go about it and it's part of a comprehensive approach to decreasing overall tobacco consumption in Oregon," Roche said.

BALLOT DEADLINE

County elections staff must have your ballot by 8 p.m. Sept. 17. Ballots can be mailed or dropped off at sites throughout the area. Questions? In Lane County, call 682-4234.