Tobacco.org

Cigarette tax hike put on hold 

the proposed $1 per pack hike in the cigarette tax has been scuttled at least temporarily in a political squabble pitting the governor and the tiny House Republican caucus against the Democratic majority in the House of Representatives.

A visibly peeved Steven Costantino, chairman of the House Finance Committee called for the legislation which he introduced, and was scheduled for passage by the full House on Wednesday, to instead be pulled and sent back to his committee because Gov. Donald Carcieri — who proposed the cigarette tax hike and other revenue raising measures in the bill as part of his supplemental budget — no longer supports it.

The quarrel over the cigarette tax is only one of the immediate problems with the governor's supplemental budget. An actuary’s report shows that pension changes contained in the governor’s proposal would save only $46 million, the administration had booked $96 million in revenue to bring the budget into balance. That $50 million miscalculation is added to another $20 million in other shortfalls that have materialized since the budget was submitted last month.

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