Opines that a cigarette tax increase will be decided by the price of oil in Alaska. Proposes plan to counter potential tax increase. Identifies potential strategies: economic impact statement (bootlegging and regressivity arguments), witnesses, allies, grassroots lobbying, calls and letters to legislators, and a media tour.
Page 1: eik42f00
STATE TAX PLAN ALASKA
LEGtSLATN.E ACTION: October 3, 1990
ISSUE: Cigarette and O.T.P. Tax Increase
In spite of the current revenue windfall due to high oil prices, the anti's will likely introduce
tobacco taxes for punitive reasons. Preventing the sale of tobacco to minors, and the
need to raise revenue for anti-tobacco education and social programs will be the
If oil prices remain high, then basic fairness and regressivity arguments should be enough
to stop any tax bills. If oil prices drop, legislators will be looking to replace revenues they
are already counting on to fund pet projects.
RESOURCES NEEDED YES/NO DATE NEEDED
ECONOMIC ANALYSIS/FACTSHEET? YES 1/14/91
Standard regressivity arguments, bootlegging statistics & impact on minors.
LEGAL MEMORANDUM? NO
EXPERT WITNESSES? YES On call for hearings.
Only if we could develop an Alaska economist as a witness.
COALITION ALLIES? YES Testin-onyforhearings.
Vendors, Retailers & Cabaret, Hotel & Restaurant Association.
TI GRASSROOTS MOBILIZATION? YES Mobilize soon
COMPANY RESOURCES? YES Mobilize soon
' after introduction.
Constituent letters and calls from smokers and retailers. Also close.
coordination of TI & company lobbyists.
Page 2: eik42f00
PUBUC AFFAIRS/MEDIA RESOURCES? YES 1/91
Social costs media tour to Anchorage. Meet with editorial board of Anchorage Times.
Assistance in developing labor alliances.
ADDITIONAL NEEDS? NOT AT THIS TIME