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AWB Urges Voters To Turn Down Initiative 773 |
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Written On: October 10, 2001 |
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Written By: Richard Davis |
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OLYMPIA – The Association of Washington Business Board of Directors voted to oppose Initiative 773 at its annual meeting last week.
The Initiative would raise cigarette and other tobacco taxes by 73 percent, with the proceeds ostensibly going to additional enrollment in the state’s Basic Health Plan for low-income people. However, the way the Initiative is written, there is actually no guarantee that even one additional person would be enrolled.
After careful consideration of the fiscal impact of this measure on the state budget, the AWB Board of Directors voted to oppose I-773.
“Raising taxes and dedicating revenues by Initiative is a bad idea, even in the best of times,” says AWB President Don Brunell. “With a looming $1 billion budget shortfall, this measure would only add to the state’s potential fiscal problems.”
“On the one hand, I-773 creates a largely expanded Basic Health Care program,” Brunell says. “On the other hand it proposes to pay for this program with a shrinking pool of money.”
AWB’s Board was also concerned about the measure’s impact on small businesses such as wholesalers and retailers.
“There are a number of avenues people can use to purchase tobacco products,” Brunell says. “If the cost is high enough, people will bypass traditional retailers and either buy them elsewhere.”
“We believe there is also likely to be a tremendous increase in cigarette smuggling because of the large difference in prices between cigarettes in Washington and neighboring states,” Brunell concluded.
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