Tobacco Documents Online

~ COUNCIL OF STATE GOVERNMENTS RESOLUTION R.LLATtNG TO CONSUMER EXCISE TAXES ~ WWREA.S, President Mton fs promoti.ng an aggressive agenda for the United States, i.n the areas of deficit reduction, economic and socW poliCies; YaMRF.A.S, the President has called for an historic increase In fncome and energy taxes on individuats and bushaesses In the United States; and WMR,PA.S, the President's recommended policies will have a profound impact on the administration and financing of gove.rnment services at a11 leveis; NOW, THEREFORE, BE.IT R.ESOLVED that, the Council of State Covernments stroagly opposes the Inclusion of federal consumer excfse tax Increases in future , Presidential and congressional policies, for the reasons stated below; I. An increase In consumer excise taxes wi11 further delay economic recovery In the United States, by adversely impactin'g job growth (As many as P t}00 jobs may be lost due to policies currently under consideration by the ~. ~utive branch.); - 2. An increase In consumer excise taxes will result in a reduction of tax competf tjon between the federal government and state and local governments, (state and local governments could lose as much as $2.8 billion in,tax revenue.); 3. According to several studies conducted by government agencies and private institutions, consumer excise taxes place a disproportionate and unfair burden on the least affluent fam.ilies; and 4. According to a recent study completed by the Council of State C~over:aments, consumer excise taxes, more specificatly those identffled as taxes on "sin", f.e. tobacco, alcohol, motor fuel, etc., have been shown to be Inadequate and tuzreliable revenue sources for vital services, such as, coverage of lxadfgent he.atthl care. R7OW, THEREFORF,13i3 IT FURTHER RFSOLVF-D that, the Covnd of State Governments believes that federal tax policy should be fair, balanced, and promote economic prosp,erity. FedeiA policies should not Impair, bu t facilitatG tbte ability of state and local governments to adopt sound and equitable economic ;V tax Nl1cles to meet the conum.itrne.nts to Its shared Co,nstituencies. AdOp te<L* . Director's or Sponsor's Name .--'' . Sponsor's titie