Tobacco tax advocates spark support for I-185
Supporters of an initiative that would increase the tax on tobacco products released a report card Wednesday giving Big Tobacco an “F” when it comes to health issues in Montana and tried to drum up support to have their bill pass Nov. 6.
At a news conference just north of the state Capitol, members of the American Heart Association, American Cancer Society Cancer Action Network and the Campaign for Tobacco-Free Kids spoke about Initiative 185, which proposes adding $2 per pack of cigarettes and taxing other tobacco products to help fund Medicaid expansion in the state when funds end in 2019.
“Big tobacco gets an ‘F’ for systematic lies about its product,” Amanda Cahill, director of government relations for the American Heart Association, said as about 20 people from various agencies stood nearby.
Supporters said tobacco costs Montanans $440 million a year in health care costs and that every household pays $779 extra in taxes to help cover costs of smoking. They note it’s been 13 years since a tax was raised on tobacco products in Montana.
A group opposed to 185 says the ballot initiative is a large new tax increase that permanently expands Medicaid but doesn’t allocate enough money to pay for it.
Supporters said tobacco-related diseases cost Medicaid more than $81 million a year.
The attorney general’s office estimates new revenue from increases in tobacco taxes will generate $74.3 million per year by 2023.
Not only will taxes on cigarettes increase to $3,70 a pack, but I-185, known as the Healthy Montana Initiative, increases the wholesale price for all other tobacco products by 33 percent including new taxes on e-cigarettes and vaping products.
Speakers at Wednesday’s rally spoke of how tobacco has taken a personal toll on them, talking about family members lost or health issues.
Among those was Dr. Todd Wampler of St. Peter’s Hospital, who said his father died when Wampler was 13.
“Nobody should have to see their parents suffer like that,” he said, adding tobacco companies target military members.
“We have a moral obligation to our military veterans,” he said, adding 185 provides help to stop smoking.
Wampler said 185 brings an “incredible opportunity to not only save lives but to stand up for our military members.”
Chuck Denowh, a spokesman for Montanans Against Tax Hikes (MATH), warned against passage of 185.
“I-185 is a massive new tax increase that permanently expands Medicaid but doesn’t allocate enough money to pay for it, leaving all Montanans on the hook for tens of millions of dollars per year,” he said.
Denowh said MATH plans to make sure voters understand why they should reject I-185.
The Healthy Montana Initiative filed a complaint in June with the Commissioner of Political Practices alleging Decision Point Consulting and MATH had failed to report as a political committee and disclosing expenditures, contributions and allowed robocalls. A decision is pending.
Most recently, Dave Lewis, former state budget director of more than 10 years, said in an opinion piece that he agreed with MATH that the tax would not provide the necessary funds and called 185 “a nightmare scenario for future legislatures.”
“I-185 would permanently expand Medicaid in Montana and create more than $60 million worth of spending per year. These costs will fall directly on Montana taxpayers,” Lewis wrote.