‘Bill to increase tobacco taxes will disenfranchise the poor’

King-Nabors

Asserting that it will be disenfranchising poor people in the community, Sen. Karl R. King-Nabors (R-Tinian) is strongly opposed to a bill that seeks to bring tobacco taxes to the recommended level, tie the tax rate to inflation, and invest revenues from the tax into health promotion and disease prevention.

Appearing online at a public hearing on House Bill 22-54 at the Rota Mayor’s Office conference hall that was conducted by the Senate Committee on Fiscal Affairs, King-Nabors suggested that a better approach would be incentivizing people to purchase items that are healthier, reducing the costs of living to live a healthier life, as opposed to taxing tobacco and beverage products.

“I think it’s very important that we understand what this tax is asking. So when we’re talking about whether it’s sugar beverage, or alcohol tax, there are so many unintended consequences to the bill that’s being proposed,” the senator said.

The House had already passed the bill and it is now before the Senate Committee on Fiscal Affairs. Rep. Christina E. Sablan (D-Saipan) is the principal author of the
legislation.

The bill seeks to update the definition of tobacco products in the CNMI’s excise tax laws; bring tobacco tax rates to the recommended level; set tobacco tax rates to increase with inflation; and invest tobacco tax revenues in health promotion and disease prevention and control programs in the CNMI.

At the end of the day, King-Nabors said, ultimately the people that are going to be affected by this legislation are those that don’t have the means, because it would raise taxes on tobacco and on sugar drinks.

“But I want to make it clear because it doesn’t spell it out in this legislation. What this legislation is hoping to do is curb diabetes, heart deficiencies, heart failure,” he said.

Medically speaking, King-Nabors said, a lot of these components have to do with people’s diets and own activities whether it be young adults or adults.

“It isn’t just about purchasing 24 sodas at the store. No, it is disenfranchising the people that don’t have money in our community,” he said.

King-Nabors said he recently had a meeting with one House member who smokes. He said the lawmaker stated that he/she does not care how much they raise the tax on tobacco, as he/she is still going to buy it.

“That’s good for you to say because you have the means,” the senator said.

He said his overarching argument to those who don’t necessarily understand the full ramifications of this legislation is that it is going to affect everybody across the board.

Hypothetically, King-Nabors said, if it’s fine to tax beverages, how about taxing the icing on the cake for a daughter’s, nephew’s, or godson’s birthday.

“What about taxing the lechon (roasted pig)? What about taxing the pork and beef that add cholesterol that the House is so adamant about?” he asked, adding that the House underscored the need for this legislation so the government can take the money and give it to the healthcare system.

“But I’m telling you right now, what you’re doing is not going to save our healthcare system. Because you have a holistic problem, and just brought it down to sugar, brought it down to tobacco,” he
said.

King-Nabors said if there is really a concern for the healthcare system, why are they not taxing betel nut, considering there is a high rate of oral cancer in the CNMI.

“They don’t want to touch betel nut for the very same reason why we all understand that this tax is fraudulent,” he said.

King-Nabors said people should instead be encouraged to walk, to eat a healthy diet, and lead healthy lives, as opposed to taxing those products.

“So now when I have my daughter’s birthday, it’s going to cost me $100 to buy one case of soda? That’s where we’re going to end up?” he asked.