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Tobacco dead end

Would it be in the state’s best interest to encourage more people to smoke tobacco? The question comes up because the Department of Human Services faces a budget squeeze. It is running about $72 million short, and part of the reason is that tax income from cigarettes and other tobacco products is down $21 million, according to published reports.

The state’s policy, though rejected the last time the voters got a crack at it, is to tax cigarettes more heavily in order to help fund services such as insurance for more people under the Oregon Health Plan.

Officials note that raising taxes has a double benefit: Not just more revenue but also less smoking. In that spirit, the governor has said he’ll again propose a higher cigarette tax next legislative session.

Eventually, this approach would lead to the handful of remaining smokers being expected to cough up millions in taxes by themselves. So it can’t work in the long run. But already, the shortfall in tobacco revenue shows that the policy has run into a dead end. (hh)

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