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Ore. Cigarette Tax Hike Would Fund Health Programs

A proposed 84-cent-per-pack increase in Oregon's cigarette tax would be used to pay for healthcare for uninsured children in the state, said Gov. Ted Kulongoski.

The Associated Press reported Sept. 25 that Kulongoski, a Democrat, announced that he will propose the tax in the 2007 legislative session, despite expected opposition from the Republicans who control the state House of Representatives. He said the tax hike could generate enough money to provide health coverage to all 117,000 uninsured children in Oregon, as well as expanding school-based health and dental programs.

"Every day we put off solving this problem, thousands of kids across Oregon are more likely to struggle in school, and miss out on opportunities to play, learn and thrive," he said in proposing to increase the per-pack cigarette tax from $1.18 to $2.02.

House lawmakers shot down a more modest tax-hike plan in 2005, and Rep. Tom Butler, the chair of the House Revenue Committee, said he was "shocked" at Kulongoski's announcement. Butler said that higher taxes would only encourage smokers to buy cigarettes online, and he said that cigarette taxes are not a reliable source of income.

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