10.05.2006

Proposition 86

Short version: No

Long version: Proposition 86 would raise cigarette taxes for emergency room hospitals, health care for uninsure children, and stop smoking programs. So, yes, I'm a heartless jerk for suggesting you don't vote for it. Actually, a heartless jerk in the tobacco industry's pocket. Seriously though, these programs are great, and they should totally be funded. I'm just of the opinion the state should be finding money in its budget for it and not just hiking taxes on cigarettes, which, like sales tax, is mostly a poor tax.

First of all, we aren't talking about a small hike. The bill would increase the tax per pack from 87 cents to $2.60, nearly a 200% increase. Second, a majority of its predicted revenue, nearly 2.1 billion, will not be going to non-smoking programs, or child insurance, but to hospitals, which aren't exactly strapped for cash. Third, since one of the goals of these tax hikes is to get people to stop smoking, there is no guarantee this money would actually be a continuous flow of revenue (which again brings up the point if children's insurance is so important, why not actually fund it in the budget?!). Fourth, law enforcement is against the proposition because they think it will lead to increased gang and criminal activity for illegal, tax-free, cigarettes. With a 200% increase in price, its hard not seeing that happen.

Fifth, and to me a HUGE point, it would be put into the state constitution a strange provision exempting hospitals from antitrust laws. The backers say this is to guarantee on-call specialist, while the opposers say it could lead to things like price-fixing. Considering the backers answer to that is "SMOKING KILLS", this proposition seems highly dubious to me.

The top link is to the Official California Voter Information Guide. Here is some other good info on this and other propositions:
Article in the SF Chronicle on Prop. 86
California Voter's Foundation page on Prop. 86
League of Women Voters information on Prop. 86
And go here for Warren Olney's Which Way, LA? debate on Prop. 86