In January, a tax increase was passed in Wisconsin to add an additional dollar to every pack of cigarettes. The legislation, supported by Gov. Jim Doyle, was part of a larger movement to prevent people from smoking, and it has shown preliminary success.
Evidence of this can be seen in a significantly higher volume of calls to the state hotline to help people stop smoking, and a significantly lower number of packs - six million - bought in March 2008 than in March 2007.
This is all great, but the tax has had an unintended consequence. Doyle planned to use the tax revenue to account for $449 million of the state budget.
However, the tax only picked up $40 million last month. To meet the projected total, revenue would have to increase about 11 percent each subsequent month in the fiscal year.
Additionally, this tax disproportionately affects poor residents, and the tax does not apply to online purchases or on tribal lands. To avoid the tax, many are turning to these options.
Doyle had the right idea to increase the tax on cigarettes. However, the money gained was improperly projected in its contribution to the budget.
Although this probably was some form of political bargaining, a tax that closes the budget deficit but primarily affects poverty-stricken residents sends a mixed message. It is reckless to rely on a sin tax"" to take on such a large portion of the budgetary issues.
The cigarette tax has made gains in reducing the number of Wisconsin residents who smoke, but the state needs to better allocate tax dollars toward programs that help people quit smoking.
Doyle must also push through a state-wide smoking ban. A statewide ban would smooth out the legal differences across municipalities with smoking bans, while ensuring uniform health standards in Wisconsin businesses.
