Sin Taxes Would Help

In his first address to the General Assembly after becoming governor in 1969, Bob Scott had the audacity to propose a state tax on cigarettes. He was roundly criticized in a state where tobacco ruled the agricultural roost, so his support for the tax took great political coverage. When the smoke cleared, the legislature, to the surprise of many, acceded to Scott’s wishes because the state needed the money.

The state needs the money now, too. Lawmakers are faced with a $400 million hole in their budget because tax collections so far this year have run short of estimates. North Carolina still has the second-lowest cigarette tax in the country, so a modest increase in the tax, along with the one on alcoholic beverages, could help patch the revenue hole.

Gov. Mike Easley, Co-Speakers of the House Richard Morgan and Jim Black and Senate President Pro Tem Marc Basnight should unite in support of increasing these sin taxes. For them, the political fallout would pale in comparison with the opposition Scott faced in 1969. Tobacco production in North Carolina has declined since then while concerns about the dangers of smoking have risen. Alcohol is always an appropriate tax target in this socially conservative state.

Failure to fill the $400 million budget hole could take a considerable toll on essential state services. Hiking taxes on butts and booze seems the most effective and politically feasible way to bring the budget into balance and to keep state programs, many of which have already been weakened, in place.