(Washington, D.C.) – Today, Tom Schatz, president of the Council for Citizens Against Government Waste (CCAGW), sent a letter to West Virginia Governor Earl Ray Tomblin, urging him to cut wasteful state government spending rather than raise taxes.  The letter reads as follows:

“West Virginia legislators will soon consider Senate Bill 362 and House Bill 2973, which would raise the tax on a pack of cigarettes from 55 cents to $1.55 and the tax on smokeless tobacco from 7 percent to 50 percent of the wholesale price of each item.  On behalf of the 5,894 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in the state of West Virginia, I urge you to veto any bill that increases state excise taxes and instead focus your efforts on cutting wasteful and unnecessary spending from the state budget. 

“Proponents of West Virginia’s cigarette tax hike believe it could raise as much as $133 million in revenue to be used for a ‘West Virginia Healthy Future Fund.’  However, history has shown that raising excise taxes does not produce projected revenue.  Such tax increases drive purchases across state lines or to untaxed or lower-tax venues, like Native American territories and the Internet.  Of the 57 excise tax increases that states implemented between 2003 and 2007, only 16 met or exceeded revenue targets.

“Excise taxes are regressive and disproportionately impact the poor and those living on fixed incomes.  The Congressional Budget Office has reported that cigarette excise taxes are the most regressive type of excise tax.  At a time of economic turmoil, politicians should be pursuing policies that offer taxpayers some relief, rather than imposing new burdens.

“CCAGW applauds your pledge to lower taxes.  I strongly urge you to keep that promise by vetoing any bill that raises taxes on cigarettes or tobacco products.  CCAGW hopes you will instead work with state lawmakers toward cutting wasteful, unnecessary and duplicative government spending.  It’s time to give hard-working West Virginians a break.” 

The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.