California cigarette tax hike doomed because of where the money would go

June 7, 2012

It looks like cigarette smokers in California will be spared an added $1 per pack excise tax.

Officially, the vote on Proposition 29 to more than double the Golden State's cigarette tax is too close to call.

The latest tally shows the anti-tax side eking out a 50.9 percent victory. That's a 63,000 vote lead out of around 4 million votes cast.

Smoking_cigarette

But some ballots reportedly are yet to be counted. And whatever the final result, you can bet on a call for a recount.

About face because…: So why did the tax increase go from almost two-thirds voter approval early in the campaign to apparent failure?

Veteran California election watchers say the vote is yet another example of the state's north-south divide on issues.

Others see a state version of a national trend in political campaigns, specifically the side with the most money wins.

When the proposal to add $1 to California's current 87 cent cigarette excise tax was proposed, nearly 70 percent of voters said they were for the increase. That's not surprising, since most Californians don't smoke.

Then tobacco companies pumped around $47 million into advertising against the tax hike.

Are we really that susceptible to ads? Apparently so, especially when they characterize a proposal as a government boondoggle.

New revenue accountability: But before you shake your head at yet another simplistic framing of public governing bodies, from cities to states to Uncle Sam, as evil money wasting operations, wait.

The anti-tobacco-tax folks turned that easy-to-grasp big bad government argument, which has been so successful nationwide as a lot of people are feeling economically strapped and emotionally drained by their daily demands, on its head.

In California, they attacked the tax hike because most of the added tobacco tax money wouldn't go to the state government.

That's right. The boondoggle here, according to Prop 29 opponents, was that the bulk of the increased tax revenue wouldn't help the state out of its continuing financial straits.

Divvying up the dollars: Most of the new tax money would have been used to fund cancer research. Smoking reduction programs and tobacco law enforcement would have gotten the rest.

Now everybody wants science to come up with better treatments of and possible cures for cancer.

Few oppose programs to help smokers kick the nicotine habit and prevent kids from lighting up in the first place.

And no one is against helping any cop do his or her job more effectively.

But California is in the throes of budget meltdown. Gov. Jerry Brown announced last month that his state now faces a $16 billion deficit.

So when anti-tax forces argued that the money would go to the wrong places, it resonated.

Yes, folks turned against the tax hike because the money wouldn't go to the state of California to help ease its budget crisis.

Go figure.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • e liquid cigarette

    Glad the cigarette tax was approved here in Illinois as I am hoping it will cause some to quit the habit. As far as the increased tax, it will be spent and wasted on more stuff just like all the rest of the increases which never seem to put a dent in our state deficits and debt.

  • Your articles are more than wow!

  • Fantastic work guys im a fan of your website.

  • Bob Cavalluzzi

    Wow. Just…wow.

Comments are closed.