No Way, Jose: Health Care Sends the Wrong Signal

Jeff Alworth

A couple weeks ago, a relatively inocuous buzz poll on BlueOregon about the Governor's plan to fund children's health care with a cigarette tax racked up a whopping 120 comments.  (Seventy-three percent of BlueOregonians were in favor.)  It's a hot topic because it pits cigs against kids, and health care against taxes.   It also pits Dems against Republicans, who have begun to fight back against the proposal--gingerly. 

State Rep Dennis Richardson is leading the charge, and he has mustered four arguments for why the cig tax for kids health plan is bad policy.  The first is based on an apparently flawed understanding of the proposal--that it would represent a tax giveaway to families who are not poor.  In fact, it's scaled so that only kids in families who make less than $40,000 receive the full coverage--families making more would pay part of the premium on a sliding scale. 

The fourth reason represents a gymnastic back-flip away from the traditional GOP position of opposing new programs that are paid for by general fund dollars:

[S]ince everyone agrees providing health benefits to Oregon’s children are a top priority, it should be funded from the 20% increase in state revenues forecast for the next biennium.

Waitasecond--isn't this the same increase in revenues that, were Republicans in the majority, would be going straight back out in tax cuts?  I guess this is a new generation of Republicans for whom tax cuts take a back seat to children's health. 

But the really entertaining arguments, the second and third, are that Oregonians will be unwittingly subsidizing the kids of illegal aliens, which as you know, "sends the wrong message."

Essentially, we are telling them American citizenship does not matter because they can have the same tax-supported benefits enjoyed by those who keep the law and play by the rules.

This in turn, puts state workers--whom the GOP now fiercely defend--in the position of breaking the law. 

In the current draft, the Healthy Kids Program does not allow state employees to inform immigration authorities when there is hard evidence that our laws are being broken. It is wrong to require state employees to be complicit in the illegal acts of those seeking state benefits.

Richardson admits that the illegal immigrant issue is statistically insignificant: "Since every child born in America is an American citizen, even if the parents are here illegally, the number of Illegals who are children covered by the HKP will be very small." Yet he's willing to scrap the plan in order to prevent legal kids of illegal immigrants (they're also known as Oregonians) from receiving the benefit.

As a cherry on top, Richardson says that no money should be spent on anything "without allocating substantial funds to a 'Rainy Day' fund"--as you know, a die-hard, longstanding GOP demand.

There are a few reasons why this tax may be a bad idea--it punishes a select segment of the population, one that is disproportionately poor.  But the GOP doesn't seem too concerned about that.  So, after offering four impressively lame reasons for opposing this legislation, I gotta wonder, what's the real reason the GOP opposes this?  Could it be the tobacco lobby?  I don't mean to suggest the GOP has any ulterior motives, I'm just, you know, thinking out loud here.

Tell you what, I'll give the GOP the benefit of the doubt.  Since "everyone agrees providing health benefits to Oregon’s children are a top priority," perhaps Republican legislators will sign the pledge being circulated by Children First for Oregon, supported by 25 Democrats, "committing to vote for comprehensive, affordable health care for all children in Oregon this session."

(I'm not holding my breath, though.)

  • Joe12Pack (unverified)
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    i"Since "everyone agrees providing health benefits to Oregon’s children are a top priority," perhaps Republican legislators will sign the pledge being circulated by Children First for Oregon, supported by 25 Democrats, "committing to vote for comprehensive, affordable health care for all children in Oregon this session."

    Hmmm...even I'd agree that having access to health care is vital to the children of Oregon and beyond. However, many of us have strong reservations about who should provide it. Is it the role and responsibility of government to provide health care services to the masses? Would that make for the most efficient delivery method? Are we all really entitled to state of the art care regardless of our contribution to it? I say no to all of the above, while agreeing that our current system has immense room for improvement.

  • lin qiao (unverified)
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    Let's see. We send one message that smoking is unhealthy and you should quit; another message that you need to keep puffing to pay for health care for kids.

    The fact is, it's pretty easy to understand why jacking up "sin taxes" is bad policy. I don't think the GOP actually makes this connection; they're just ideologies opposed to "another damn government program". But you've got to consider the wisdom of the proposal anyway.

  • Chuck Butcher (unverified)
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    I've had my say about how flawed the cigarette tax is, but I really like Joe12pack's reasoning. If you're poor and don't pay a bunch into the system you can suck eggs. There's a pretty good argument to be made that those rich suckers wouldn't have anything if it weren't for the poor ones. There's also an argument to be made for not putting the poor ones in the position of just taking the rich ones stuff...

    Talk about salemanship, this guy buys the plutocrats' argument, and he ain't one.

  • Gil Johnson (unverified)
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    Joe12pack writes: Is it the role and responsibility of government to provide health care services to the masses?

    The answer Yes.

    He also asks: Would that make for the most efficient delivery method?

    Again, Yes.

    The U.S. is the only developed nation that does not provide health care for the masses and the result is an abysmal record on coverage of health care, which affects everyone in the country.

    And those other developed nations have health care systems that deliver care far more efficiently than ours.

    Why are we even having this argument?

  • anony (unverified)
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    The real argument against increasing the cigarette tax to pay for children's health care is the fact that even with the new revenue, the program is unsustainable after just 4 years (2011). That's because every time we increase the cigarette tax, people stop smoking...and the increasing rate of health care costs far outpaces inflation.

    What we need is fundamental health care reform to control costs and provide health care to everyone...not just kids. Don't get me wrong, kids are great and cigarette taxes are great...we just need to force our legislators to keep their eye on the real ball: health care reform.

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    Anony -- any incremental health care program is long-term unsustainable. We need a universal, comprehensive, national solution to bring costs under control.

    I believe that we'll see such a solution in the next four years. Does that mean that Oregon should simply stand idly by, waiting for the national government to get its act together?

    Methinks not.

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    Methinks not.

    Methinks I agree with you, Kari.

    So let's just pay for this puppy out of the General Fund and be done with it.

  • Garrett (unverified)
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    Health care is a right not a privilege. The government should have system for it. I figure that between Medicare and the Veterans Administration we would just have to expand one or the other and go with that. They're both based on successful systems run in other countries and would be a natural way to ween us out of this ridiculous private system we have now. We're already paying for it now anyway. We pay for the care of all those people that have to go to the hospital because they couldn't afford to go see a doctor 6 months before it became a problem. There are plenty of studies that show we would pay very little more than we're paying now for healthcare if we nationalized it. I've had plenty of friends living overseas and they all rave about their experiences with foreign countries health care systems so I don't buy the scare tactic that there would be lines out the door in hospitals. We need it and the kids in Oregon need this. My social Friday/Saturday night smoking habit can afford an extra $1.00 a week.

  • Robert Ted Hinds (unverified)
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    I would like to support the cigarette "sin" tax to help low income children, but serious problems exist.

    While it's true that long term, price increases in alcohol and tobacco do tend to have a statistically significant impact on rates of usage (a good thing), it's been explained to me by outreach groups that short term (first few years) they find that the addiction overrides the ability to quit and the tax takes money out of the budgets of low income families. Substitutions toward inferior foods or other necessities takes place within the family, which has an immediate effect of hurting childrens' health.

    This isn't hard to understand when you consider that the addictive power of nicotine is quite astonishing and its power to rob a poor family through taxation should not be underestimated. Nicotine is physically addictive, it is readily absorbed, easily administered, and bonds easily with natural acetylcholine receptors in nervous tissues. It almost completely crosses the blood brain barrier, has a very short half life, and reaches peak blood concentration in a few minutes. What all that means is that kinetic properties of nicotine addiction are similar to those of cocaine.

    So quitting isn't easy. The other problem is who pays this "sin tax?" A much higher proportion of Americans living below the poverty line smoke than those above poverty (about 50% more). Smoking is also more prevalent among minorities, who live in higher proportions below the poverty line anyway. So essentially, you are putting most of the tax on the poor and recycling that revenue back to them as a healthcare benefit (which should actually please the screw-the-poor crowd), less the costs of implementing and administering the program.

    The sin tax to help poor kids is a nice idea, but the devil is always hiding in the details, isn't he?

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    A few things. To Joe12pack, I guess my question would be, do you want the kids insured? The GOP have had the reigns of government for a generation, and the nation's uninsured have skyrocketted. Unless you have something other than a bromide about the market, I'll take the evidence of 25 years of Republican rule: the market will leave the poor dying needless deaths.

    For those, like Chuck, who think this is a bad funding source, I think that's a reasonable (if subjective) view; unfortunately, the GOP don't have the guts to make it. Instead, they're trying to scapegoat children of illegal immigrants. Bold.

    As for the support running out after four years--so what? No budget has a horizon that goes beyond one or two. So this program will be funded through other sources in 2011; tell me again why we shouldn't tax cigarettes now?

    I find it slightly to sharply disingenuous for people who complain that the general fund is overstressed to now argue that we should use it to pay for children's healthcare. It clearly seems to me that Republicans make this argument because they know that the cig tax for kids health care puts them in an untenable position. Driving it back into the general funds means they can cut other programs with less popular support later.

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    Like Chuck, I've already weighed in on the regressive nature of this particular tax proposal, which Robert nicely sums up in this thread.

    However, that issue aside I must strongly agree with anony and Kari that what is really needed is to address the costs side of the health care equation. It seems short-sighted at best to focus on funding while putting off addressing the root issue for some vaguely defined later point in time.

    As for the GOP reaction to this proposal. The fact that they aren't questioning the regressivity of it ought to speak volumnes to professed progressives. That relatively few professed progressives seem to even question it begs a whole series of questions...

  • Joe12Pack (unverified)
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    "but I really like Joe12pack's reasoning. If you're poor and don't pay a bunch into the system you can suck eggs."

    And I said or suggested that when? I'm familiar with hyperbole, but Chuck takes it to a whole other level.

    "To Joe12pack, I guess my question would be, do you want the kids insured?"

    Yes I do, Jeff. I just don't happen to agree that it's the role or responsibility of the state to make it happen. Basic health coverage should be provided to the poor at little or no cost and such programs already exist. For the rest of us, we need to decide what level of health care we want, need, can afford and choose the appropriate level of coverage. I don't want a large government bureaucracy forcing ("providing") that service upon me any more than I'd want to be told where to live, what to eat or how to raise my family. It comes down to a fundamental philosophical difference really. I believe in freedom of choice, personal responsibility and smaller, more efficient, less intrusive government.

    Allow me to sum up my take on the proposed scheme to cover Oregon's children by raising tobacco taxes. What is Ted smoking?

  • lin qiao (unverified)
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    The argument in favor of cigarette taxes to pay for health care seems to have a bit in common with the argument that was used in Multnomah County to sell the 3-year county-wide income tax for schools: yes, we admit it's incomplete, a quick fix, but it's better than nothing because we're in a crisis, and by the way, we promise it'll expire. And the argument against is also similar to what was said about the MultCo income tax: it's incomplete and a quick fix and just puts the problem off for a couple of years.

  • BlueNote (unverified)
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    Kids need affordable access to immunizations, periodic childhood wellness exams and to medical care for disease and injury. Anybody who disagrees with the foregoing is an idiot.

    If the legislature and governor had sufficient backbone, they would pay for the cost of a children's medical access program out of the general fund and raise general taxes to cover necessary expenditures. They don't appear at this early date to have the backbone, and therefore they are searching for a politically risk free payment proposals. Since the majority of Oregonians are not smokers and don't particularly sympathize with smokers, the tobacco sin tax was proposed.

    I am greatly disappointed in this early indication of cowardice on the part of the governor and the legislature. I assumed (incorrectly it seems) that Dems would use their newly elected positions of power to improve availability of necessary government services (like children's health care) and to raise whatever general fund taxes must be raised to pay for the services we need. Dancing around these core issues in order to enhance their chance to be re-elected is not the kind of good government I was expecting from the governor and the new Dem majority.

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    lin,

    There is a fundamental difference between this proposed tax and the MultCo income tax - the later spreads the burden relatively evenly, the former seeks to place the burden squarely upon a small minority which is dominated by the educationally and financially disadvantaged.

  • Carrie Ann (unverified)
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    "...the former seeks to place the burden squarely upon a small minority which is dominated by the educationally and financially disadvantaged."

    Gee - was that referring to smokers or uninsured families?

    Seems that the burden is actually being placed on 117,000 children whose parents cannot afford health insurance. (FYI - 91% of those children live in a household with at least one working parent.)

    While many here blow a lot of smoke (sorry, couldn't resist) as to why smokers should not be taxed, has anyone actually talked to any parents who smoke?

    The few I have talked with have said that while they don't like the idea of tax increase(they're not stupid) they would support a tax if it was guaranteed to go to children's health care. (They also happen to be people who care about children.)

    And BlueNote - your 'early indication of cowardice' comment is ridiculous. I'm sorry.

    I was at the joint committee hearings last week, and the only 'indications of cowardice' I saw came from certain members who were clearly more afraid of their constituents than a bunch of poor kids and their parents. I would change the target, and add 'indications of a lack of conscience' to your list.

    The fact is that none of the legislators who are fighting so bravely to protect smokers had the courage to step up on behalf of children, to either:

    a) Create a program to provide, or help parents pay for, health insurance for their children -or-

    b) Publicly pledge to fight for funding from the general fund.

    If there's anyone here who can guarantee that Healthy Kids could be funded through the general fund -without causing harm cuts to other critical services- please share your proposal.

    Until someone can tell me why children should continue to go without because the adults who've been running (and talking about) things can't do a better job and build a fair system for everyone - I'll be fighting for this bill to pass.

    If you are going to have a serious discussion on this topic, please at least read up on the entire proposal before making comments about who's being unfairly targetted.

    http://governor.oregon.gov/Gov/sos2006/kids.shtml

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    If you are going to have a serious discussion on this topic, please at least read up on the entire proposal before making comments about who's being unfairly targetted.

    Carrie, I would suggest that you read up on the demographics of who would be paying this proposed tax before critizing those who have read up on it.

    Whether you wish to aknowledge it or not, the fact of the matter is that smokers (ya know, those who would be paying this tax) are as a group both economically and educationally disadvantaged. And on top of that reality, statistics show that the gap in smoking cessation rates between those below the poverty line and those above it actually increased between 1983 and 2002, with those above quitting at an increasing rate while those below quit at a decreasing rate. Which gets us well within the modern move to use cigarette taxes to reduce smoking.

    In what kind of topsy-turvy alternate reality does regressively taxing the disadvantaged to pay for a program targeted at supposedly helping the disadvantaged equal anything even remotely progressive?

    Don't confuse the appearance of caring for the poor and needy with actually demonstrating concern for the poor and needy.

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    Seems that the burden is actually being placed on 117,000 children whose parents cannot afford health insurance.

    Seems to me I read that a goodly number of those 117,000 would qualify under existing programs, but their parents don't make the applications. I would guess, too, that many of these parents who can't afford to insure their kids, insure their cars. Our values are somewhat askew here.

    (FYI - 91% of those children live in a household with at least one working parent.)

    Isn't part of the answer, then, to put more of an onus on employers to provide affordable insurance? And to pay living wages that allows parents to pay for their kids insurance?

    ...Publicly pledge to fight for funding from the general fund.

    Why not make the the battle ground, though? Do you really believe there isn't a constituency out there that will go to the mat to see this gets done? And guarantee that "other critical programs" won't be cut? And how can we make that promise with ANY legislative act, in isolation? Besides, with this bill, aren't we suggesting that funding Children's Health Care isn't ALREADY a critical program?

    How about we raise comparable revenues by putting a state property tax on "non-profit" hospitals and medical facilities that would be earmarked for this...at least there's a nexus, and those who would profit from insured kids --instead of treating these uninsured kids for 'free' at grevious expense-- would help provide this benefit?

    There's lots of ways to be creative. Further taxing the addicted for their addiction seems a poor choice. (Raise cigarette taxes to pay for smoking cessation treatment, I'm there with you 100%.)

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    I would guess, too, that many of these parents who can't afford to insure their kids, insure their cars. Our values are somewhat askew here.

    On the surface of it I would agree. But it cuts both ways.

    Consider that 60% of Oregon smokers earn $25k or less per year (with half of those earning $15k or less). Long gone are the days where one can easily walk to their job, to the grocery store or the doctor's office. Getting caught driving without insurance would mean the loss of the car for folks just barely getting by in the first place. If they can't get to their job then the cost of that car insurance might well spell the difference between living in a small, cheap apartment and living on the streets. And surely the health of their children would be at greater risk on the streets than living in a warm and dry apartment, however modest it might be.

  • Joe12Pack (unverified)
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    Frank makes a good point about priorities, though auto insurance is required by law.

    Let's assume that the stats Kevin provides in his argument are somewhat accurate and perform some simple calculations. Say the average smoker does earn less than $25k per annum. Can we also assume the average smoker consumes around a pack per day? With smokes running around $4.00 per pack at current prices, that's a good $125 a month from an already tight budget. Sounds like physical & financial suicide to me, but that's their choice. What else is this person foolishly frittering his/her sparse resources on? Dining out, alcohol, cable/satellite TV, driving vehicles beyond their means? Taking out expensive payday loans to temporarily cover things they cannot afford? This stuff aint rocket science folks. Before you accuse me of being inhumane or, god forbid, an evil republican, I recognize that there are those truly in need who find themselves in bad circumstances through little to no fault of their own and they deserve our utmost assistance. It's a sick society that does not take care of the sick and hungry. Then there's the rest. Those who choose to live irresponsibly are entitled to do so, but don't come crying to me to subsidize your out of whack priorities. Glad to help, but I won't be your enabler. I realize my little rant runs contrary to the current progressive school of thought where holding people accountable for their own behavior is taboo unless they happen to be on some political enemies list, but that's just my 2 cents.

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    Buying cigarettes by the single pack one at a time isn't likely how most smokers at lower income levels buy them. Buying the cheap brands by the carton brings that one pack per day estimate down to $85 - $91 per month. Buying the roll-your-own type drops that down considerably further. Now, how much health insurance do you suppose $50 to $91 per month will buy you these days, without even adding dependents to the plan?

    Smoking is an insideous addiction, as Robert Hinds pointed out earlier in this thread, and I don't know anyone who would defend an addiction as being responsible behavior. But, on the other hand, unless you've walked a mile in the shoes of someone trying to support a family at subsistence levels then you're not really in a position to criticize where or why they take the few pleasures that they do take.

    When the statistic show, as they do, that more afluent and educated smokers who try to quit have a markedly better success rate (increasing over time) than destitute and poorly eductated smokers who try to quit (decreasing over time) that tells me that there is more than just the income level at play. Remember that these are folks who want to quit smoking and that ceasing smoking would yield stunningly obvious financial benefits to the smoker!

  • Joe12Pack (unverified)
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    No Kevin, I have never walked in those shoes. Doing so sounds just plain foolish to me. However, I used to have a significant smoking habit/addiction and believe I have lived at this "subsistence level" you speak of a time or two in my life. Adding children to that mix while maintaining relatively expensive, unnecessary habits would represent exceedingly poor judgment on my part. So, I should be rewarded for that?

    I'd be quite surprised if the average smoker actually spends less than $100 a month on smokes. You also seem to make the assumption that nearly all smokers want to quit. Not buying that argument either. Most smokers I know say they want to give 'em up, but their actions speak much louder than words. I know from experience that until one's desire to quit becomes stronger than the desire to smoke, you're going to be a smoker. Comes down to personal choice really. In regards to your bogus assertion about education and affluence, who doesn't know that cigarettes are harmful to one's health, are addictive and cost money? Every U.S. citizen is well aware of those facts and are free to make their own decisions accordingly.

    BTW, many of the low-income earners you seem to be referring to would already qualify for some type of state subsidized medical assistance if they wanted it.

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    Frank makes a good point about priorities, though auto insurance is required by law.

    Exactly. It wasn't required by law when I moved to Oregon in 1972. We later made it a requirement because --despite the cost, the imposition it placed, blah, blah, blah-- mandatory insurance was good because it required people to be more responsible.

    Insuring your children...shouldn't that be mandatory, too? If not by employers, as a cost of having employees, then at least supported and subsidized by all of us as responsible citizens?

    Buying one pack at a time at Plaid Pantry is exactly how many --if not most-- smokers buy their cigarettes. One, because it's our last pack we're buying...two, who's got the extra cash to shell out for a carton? I'm telling you it's pathetic how this addiction works, and why it's so profitable for the pushers. I think, as progressives, we wouldn't want to make claim on "our" share of those profits...as though saying "it's for the children" makes it all OK.

    .

  • GregTompkins (unverified)
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    I still don't understand why nobody's talking of banning cigarettes altogether? They've pretty much banned them everywhere already in a piecemeal fashion. Why not just go the next step and make them totally illegal?

    --GREG--

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    I still don't understand why nobody's talking of banning cigarettes altogether?

    Because the pushers and the government make too much money off addicts and their addiction.

    Let's ban cigarettes, now!

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    I still don't understand why nobody's talking of banning cigarettes altogether?

    Wow...you still don't understand?

    Say "Let's ban cigarettes, now!" and the pushers and profiteers flee like cockroaches when you turn on the kitchen light.

  • GregTompkins (unverified)
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    Well it just proves the liberal Democrats are disingenuous liars. They aren't any more "progressive" than my dog! They don't care about people any more than the Republicans. They are just out to line their own pockets and try to make themselves feel important. By the way, you may as well quit trying to shut me down, I can get a new IP address, thus outsmarting any attempt to shut me down!

    <h2>--GREG--</h2>

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