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Farmers fight Rendell's smokeless tobacco tax plan
Tuesday, June 16, 2009

HARRISBURG -- Owners of some small farms gathered in the Capitol rotunda today to urge state legislators to snuff out Gov. Ed Rendell's proposal to put a first-time tax on smokeless tobacco.

Facing a $3.2 billion deficit, Mr. Rendell wants to generate $61 million by hiking the cigarette tax by 10 cents a pack, from $1.35 to $1.45, and he wants to raise an additional $50 million by taxing smokeless tobacco.

The rally was planned by the conservative Commonwealth Foundation, which is constantly at odds with Mr. Rendell's economic proposals.

Tobacco growers criticized, one-by-one, the Rendell administration's justifications for imposing the new tax -- including the argument that Pennsylvania is the only state without taxes on cigars and smokeless tobacco.

Sen. Lloyd Smucker, R-Lancaster, said this argument "deserves an award for being one of the worst justifications ever."

Matt Brouillette, president of the Commonwealth Foundation, said the tax would close less than 1 percent of the budget deficit.

"If that's not insanity, I don't know how you define it," Mr. Brouillette said.

Tammy Weaver, a fourth-generation farmer from Ephrata, Lancaster County, said every acre of tobacco in Pennsylvania generates about $97,000 in tax revenue, and imposing new taxes would damage her farm's income, which is based 30 percent on tobacco crops.

"Haven't we contributed enough at this point?" Ms. Weaver said. "We didn't cause this $3 billion (budget) problem, yet we are targeted as an easy source of revenue.''

The tobacco tax is just a small element of Mr. Rendell's proposed $29 billion budget for the fiscal year that starts July 1 and will be part of the discussions with legislators as they meet to reach a budget agreement.

Lauren Boyer is an intern with the Pennsylvania Legislative Correspondents Association.
First published on June 16, 2009 at 1:42 pm