Doubling the state?s tax on tobacco could save lives, but also jeopardize the safety of truck drivers who deliver them to retail stores, advocates told Maryland lawmakers Thursday.
Legislators heard testimony on Gov. Martin O?Malley?s proposal to increase the state?s cigarette tax from $1 to $2 per pack on the third day of hearings in the General Assembly?s special session to tackle Maryland?s $1.5 billion deficit. The tobacco tax increase would generate $99.5 million in new revenue next year and could save thousands of lives, health experts said.
“Smoking is a huge tax on Baltimore and every jurisdiction,” said Joshua Sharfstein, health commissioner in Baltimore City. “By reducing smoking by putting an actual, monetary tax on cigarettes, you?vealleviated the more important tax.”
Opponents said the increase would disproportionately affect middle- and low-income families, increase black market activity and jeopardize the safety of retailers.
Sen. David Brinkley, a Frederick County Republican, said a tax increase would encourage smokers to travel to nearby states with significantly lower tobacco tax.
Tax on cigarettes in Washington is $1, 30 cents in Virginia, 55 cents in West Virginia, and $1.35 per pack in Pennsylvania.
“People still have an alternative market,” Brinkley said. “Until you close the border, your assumptions are just false.”
The O?Malley administration acknowledges the tax increase would have diminishing returns. After the first year, the state is expected to net $164 million, and then decline 3 percent annually.
Several suppliers said cigarette trucks are increasingly lucrative targets for thieves.
David Han, a Baltimore wholesale supplier, said his cigarette truck drivers were victims of at least three carjackings this year, one of whom was handcuffed inside his truck for an entire day before police were able to locate him.
Fred Parsons, general manager of the Baltimore-based George J. Falter supply company, said one of his drivers suffered a fatal heart attack after his truck was robbed.
“Smokers have no rights as long as they?re in the minority,” Parsons said. “It?s easy to piggyback a tax on the minority.”
jmalarkey@baltimoreexaminer.com
