If the democrats in New Hampshire want anyone to take them seriously on why we should not lower the cigarette tax, they had best find a better spokesperson than House rep. Christine Hamm from the Peoples Republic of Hopkinton.(PRH)
From this mornings union leader..
Rep. Christine Hamm, D-Hopkinton, argued against the change. She said no state has seen tobacco tax revenue increase after a tax cut.
“This is yet another expensive exercise in futility,” she said. When it comes to tobacco, she said, “Every tax hike produces new revenue, and every tax cut reduces it.”
Oregon tried a 10-cent cut, and saw revenues fall by 10 percent, she said.
“To do the same thing would be fiscally stupid,” Hamm said
You know what else is stupid? Listening to Christine Hamm. Oh, and comparing Oregon to New Hampshire? There are almost no demographic similarities, the most important of which is the sheer size of Oregon and the proximity of neighboring states which are also huge.
No one is driving across Washington State, or up from California, or Idaho, or anywhere else to buy cigarettes in Oregon. Only Washington State taxes them more (the last I checked.) No incentive, no gain.
But here in New England, where people can buy almost everything cheaper in New Hampshire, the classic New England maxim does not apply–"you can get there from her," or here from there, and they do. People shop here from other states to save money. So reducing taxes on cigarettes (or anything else) gives them one more incentive to make the trip or to buy more while they are here.
Need proof?
Raising the tax already cost us revenue. Last August Maine announced that it’s sales had increased 20%. That is most likely money that used to get spent here but which the tax hike diverted back to Maine. (I wrote about it here)
And more Proof?
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