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OpinionAugust 19, 2015

Over the past few months, the University of Missouri has been working with Treasurer Clint Zweifel and Attorney General Chris Koster on a proposal to raise the tobacco tax from 17 cents per pack to somewhere around 90 cents per pack, with the revenue to go to universities under Treasurer Zweifel's new "Missouri Promise" program...

Wayne Wallingford

Over the past few months, the University of Missouri has been working with Treasurer Clint Zweifel and Attorney General Chris Koster on a proposal to raise the tobacco tax from 17 cents per pack to somewhere around 90 cents per pack, with the revenue to go to universities under Treasurer Zweifel's new "Missouri Promise" program.

Some favor this proposal, saying that this is a way to help more Missourians afford college (part of the program will help fund scholarships for Missouri students who meet certain criteria) and help our universities access a guaranteed funding stream isolated from the demands of other government programs, including the ever-expanding social services budget.

Still others (myself included) have concerns about this tax. If the system is given access to a dedicated tax, how are we to know that this funding will be used productively and in the best interest of Missouri taxpayers?

Additionally, many are concerned about using such a tax increase to create a massive new program like the Koster/Zweifel "Missouri Promise" proposal. Other states have passed similar tax increases (with similarly lofty new programs in mind) with the expectation that the tax would generate hundreds of millions of dollars in new revenue, only to face substantial shortfalls. If the same holds true for this proposal, will our state's taxpayers be asked to foot the bill for the difference?

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Others have offered alternatives to the size and purpose for a tobacco tax increase. Given that voters rejected a similarly-sized increase in 2012, they argue that a smaller increase to fund investments in early childhood health and education might be more successful on the ballot and might also be more helpful for our state. Proponents of this approach contend that improving the quality of and increasing access to pre-Kindergarten education and providing health screenings to children ages 5 years old and under will bolster children's educational outcomes and pay bigger dividends to Missouri's economy.

Still, others argue that funding from a tobacco tax increase should be used to pay for the health care of families without Medicaid coverage, allowing the state to offer health care coverage to the working poor without expanding Medicaid as envisioned by Obamacare.

In principle, I oppose higher taxes, but I would like to hear your thoughts on the tobacco tax.

You can reach me at wayne.wallingford@senate.mo.gov or 573-751-2459.

Editor's note: Wallingford's column is based on a cigarette tax proposal raised by the University of Missouri, and should not be confused with a separate tax increase proposed by the Missouri Petroleum Marketers and Convenience Store Associate for a raise in the tax to 40 cents per pack.

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