The Maine Wire
  • News
  • Commentary
  • Maine Wire TV
  • About
  • Contact
Facebook Twitter Instagram
Trending News
  • Pro-Abortion Satanist Berates Christians Protesting Outside Portland Planned Parenthood
  • Liberals Roast “Great White Mother” Mills for Opposition to Tribal Sovereignty Bill
  • Golden Backs “Lukewarm” Debt Ceiling Deal But Criticizes Cuts to IRS
  • Auburn Rep Files Lawsuit Challenging Constitutionality of PAC Fundraising Restrictions
  • Bangor-area Church Sues School Board for Religious Discrimination in Lease Rejection
  • Protest at Maine State House for Iraq War Veteran Killed in 2022 Memorial Day Shooting
  • Competitive Shooting Event to Raise More Than $75k for Travis Mills Foundation with USPSA Maine State Championship
  • GOP Wants Limits on “Net Energy Billing” to Rein in Electricity Rates
Facebook Twitter Instagram
The Maine Wire
Login
Friday, June 2
  • News
  • Commentary
  • Maine Wire TV
  • About
  • Contact
The Maine Wire
Home » News » Raising tobacco taxes will hurt residents, businesses struggling to recover post-pandemic
Commentary

Raising tobacco taxes will hurt residents, businesses struggling to recover post-pandemic

Jonathan ShaerBy Jonathan ShaerMay 5, 2021Updated:May 5, 2021No Comments3 Mins Read
Facebook Twitter Email LinkedIn Reddit
Share
Facebook Twitter LinkedIn Email

The nonpartisan Revenue Forecasting Committee met recently and determined Maine is in a strong financial position, with the General Fund expected to be bolstered by almost $462 million for the current fiscal year. This is in addition to the anticipated $6 billion windfall from the federal stimulus package. Great news, to be sure, but it begs the question why the Maine legislature would continue to consider doubling the tax rate on every type of tobacco product, including a pack of cigarettes, from $2 to $4.

With the good budget news, Governor Mills took a victory lap saying: “The State revenues have not only returned to pre-pandemic levels but have surpassed those estimates and are a testament to the power of the Federal stimulus, our prudent fiscal management of the State budget and the resiliency of Maine business and workers.”

Kirsten Figueroa, Commissioner for the Department of Administrative & Financial Services added, “Our commitment to the fiscal stability of Maine and the lives and livelihoods of Maine people continues, and will be a cornerstone of a forthcoming supplemental budget proposal.”

With news like this, it’s easy to forget we’re still emerging from a pandemic. Despite strong revenue projections, many real people continue to struggle – particularly low-income folks. According to the Pew Research Center, 39% of upper income adults, compared to just 22% of lower-income adults, say their financial situation has improved during the pandemic. When it comes to saving money, 47% of lower-income adults, who generally save very little, are saving even less now.

Now is not the time to be raising any tax, but especially not those taxes which disproportionately impact the lowest income earners, like tobacco. According to the CDC, over 60% of Maine smokers earn less than $25,000 annually, with 38.1% earning under $15,000. For a pack a day smoker, this tax increase would mean a $777 additional hit annually. Regardless of where one stands on tobacco, the fact remains that tobacco taxes are among the most regressive because they most severely impact those least able to afford it.

For your local convenience store also struggling to emerge from the pandemic, the impact of this tobacco tax would be equally painful, particularly those within driving distance to New Hampshire. Because of its relatively low tobacco tax rate and non-existent sales tax, tobacco would be far less expensive in New Hampshire, so this tax increase threatens to rob Maine stores and the Maine General Fund of important revenue.

According to the National Association of Convenience Stores (NACS), tobacco represents 38.8% of all in-store sales and tobacco purchasers are often among stores’ most loyal customers. If Maine convenience stores were to lose these customers, they would also lose all of their non-tobacco purchases – the entire market basket made up of drinks, food, lottery tickets and more.

We’ve heard the saying “we’re all in this together” for more than a year now. It’s time to recognize that the saying goes beyond mask-wearing and social distancing and refers to empathy for our neighbors, and support for our local businesses. The state may not need the money now, but our local businesses and lowest income residents certainly do.

Commentary Featured Opinion sin tax tobacco tobacco tax
Previous ArticleMills’ abuse of power as governor predictable after conduct as attorney general
Next Article Time to pursue real tax fairness in Maine with a flat income tax
Jonathan Shaer

Jonathan Shaer is executive director of the New England Convenience Store and Energy Marketers Association.

Related Posts

Press Herald Quotes Fake “Small Business Coalition” Without Disclosing Funding Ties to Liberal Dark Money Groups

May 26, 2023

Maine Mom Wonders What Would Happen Today to Tomboy Daughter: Letter

May 23, 2023

Old Town School Board Hits Pause Button on Proposed Transgender Policy

May 23, 2023

Leave A Reply

Recent News

Pro-Abortion Satanist Berates Christians Protesting Outside Portland Planned Parenthood

June 1, 2023

Liberals Roast “Great White Mother” Mills for Opposition to Tribal Sovereignty Bill

June 1, 2023

Golden Backs “Lukewarm” Debt Ceiling Deal But Criticizes Cuts to IRS

June 1, 2023

Auburn Rep Files Lawsuit Challenging Constitutionality of PAC Fundraising Restrictions

June 1, 2023

Bangor-area Church Sues School Board for Religious Discrimination in Lease Rejection

May 31, 2023
Newsletter

News

  • News
  • Campaigns & Elections
  • Opinion & Commentary
  • Media Watch
  • Education
  • Media

Maine Wire

  • About the Maine Wire
  • Advertising
  • Contact Us
  • Submit Commentary
  • Complaints
  • Maine Policy Institute

Resources

  • Maine Legislature
  • Legislation Finder
  • Get the Newsletter
  • Maine Wire TV

Facebook Twitter Instagram Steam RSS
  • Post Office Box 7829, Portland, Maine 04112

Type above and press Enter to search. Press Esc to cancel.

Sign In or Register

Welcome Back!

Login below or Register Now.

Lost password?

Register Now!

Already registered? Login.

A password will be e-mailed to you.