Ways to Lower Budget Deficit
Rep. Greg Porter in Indianapolis Offers Ways to Lower Budget Deficit
STATEHOUSE–If you smoke, dip or chew, you should be aware that state Democratic lawmakers see extra taxes on all tobacco products as a way to help make up for the projected $2.4 billion state budget shortfall, expected over the next two years.
In a news conference Monday morning, State Representative Greg Porter, of Indianapolis, once again brought up the $2 tax on each pack of smokes suggested several times by Democrats.
“Our conference committee report does include a $2 cigarette tax,” he said. “That would generate $800 million.”
Porter also said taxes would be placed on other tobacco products, should Democrats get their way.
“The other tobacco products would also potentially generate about $54 million,” he said.
But, Porter acknowledged that Republicans have the upper hand in any negotiations on the matter because of sheer numbers, and said so far he has not had much conversation with any Republican leaders on the conference report or the committee’s actions on HB1001, which is the budget bill.
“We’re asking to be full partners in this. I know you have the speaker and the governor,” he said. “But, we as Democrats, there’s about 40 of us in the House and Senate, we want to be part of that number.”
Porter, in a news release, made the following statements regarding both issues:
“Today, I proposed increasing the cigarette tax to $2 to raise $800 million, which was included in my initial budget proposal. We should also delay the individual income tax cuts, freeing up an additional $300 to $400 million. We received an influx of dollars during COVID-19, so we put an extra $3.7 billion into the Pension Stabilization Fund. If we use portions of that money, Indiana could free up $1 billion each year. Some more creative solutions are a small sugary beverage tax, increasing the alcohol tax or eliminating the free play gaming concept.
“We should exhaust all potential streams of revenue before making cuts. Let me also remind the majority: there’s one glaring reason for this forecast change from December to April. This is the time to help Hoosiers, not enact sweeping cuts that leave Hoosiers out in the cold.”
