New Hampshire’s GOP Budget: Low Cigarette Taxes More Important Than Education, Health Care

[Donnachaidh]

http://thinkprogress.org/economy/2011/06/17/247655/newhampshire-budget-cigarette-taxes/

In another example of the misplaced priorities that are showing up in budget negotiations across the nation, New Hampshire House and Senate negotiators agreed to a budget Thursday that cuts cigarette taxes while raising state college tuition fees and laying off state employees:

“Republicans in the House said the tax cut to $1.68 per pack will spur business at stores along the state’s borders. Critics said it will cost the state $12 million a year in revenue, and that tobacco companies will pump up prices by a dime to negate the break meant for smokers.”

Senate negotiators initially opposed the cigarette tax cut and a bill to lower the cigarette tax rate was voted down in a Senate committee earlier this session. However, House Speaker William O’Brien (R) reportedly “insisted on the tobacco tax cut,” and “leaned on his team to get the measure included in the budget, after negotiators had already agreed to shelve the plan.”

While house negotiators fought to include the tobacco tax cut in the budget, New Hampshire legislators were faced with a $42.5 million budget deficit. Yet “the budget also raises no taxes or fees,” according to Senate Finance Committee chairman Sen. Chuck Morse, R-Salem.

More at the link --