Gov. Chris Christie’s
budget proposal, delivered last month,
suggests raising taxes on the “e-cigarettes” to the regular rate for
cigarettes — which is $2.70 per pack — saying they’re “unregulated and
subject to standard State sales taxes only.”
But at the state Assembly Budget Committee’s meeting today at
Montclair State University, Steven Clark — a Union City resident who
said he quit smoking regular cigarettes a year ago thanks to
e-cigarettes that provide nicotine through liquid vapor instead of smoke
— called the idea of raising taxes on them “reckless and harmful.”
“Electronic cigarettes have the potential to make smoking obsolete
within a generation,” Clark said. “With the right combination of
tailored regulation and cost-incentives, e-cigs might end smoking as we
know it.”
Clark said he’s a member of Consumer Advocates for Smoke Free
Alternatives, a pro e-cigarette advocacy group, but that he’s not
speaking on its behalf. He said the group is not funded by the
e-cigarette industry.
Because the products are so new, there is not much data on their
safety. According to a Feb. 28 press release from the Center for Disease
Control and Prevention (CDC), e-cigarette vapor has “far fewer of the
toxins found in smoke compared to traditional cigarettes,” but “the
impact of e-cigarettes on long-term health must be studied” and
“research is needed to assess how e-cigarette marketing could impact
initiation and use of traditional cigarettes, particularly among young
people.”
CDC Director Tom Frieden said nobody knows at this point “whether they will decrease or increase use of traditional cigarettes.”
Mark Anton, a Flanders resident who owns company that imports and
sells e-cigarettes, said he plans to begin manufacturing the liquid
nicotine for the products soon. But if the tax kicks in, he said, he’d
open the manufacturing facility in Pennsylvania instead.
“We would be forced to compete with states that do not have such a tax in place,” he said.
The opponents of the tax – five in all — had a sympathetic ear in the
committee’s chairman, Assemblyman Gary Schaer, a smoker for more than
40 years.
“You’ll forgive me as I hold my own e-cig in my hand,” Schaer
(D-Passaic) said. ‘I will admit to you that after having gone through
every anti-smoking possibility… it’s something which I will agree with
you has given me some small modicum of help and, more importantly, it’s
given my wife and kids some modicum of health.”
Assemblyman John Burzichelli (D-Gloucester) said the state Treasurer
estimates the tax would generate $35 million in revenue annually but
that the administration has often been “creative” in its estimates.
Other concerns raised at the budget committee included how the state
funds higher education, increasing college financial aid, how the state
does not meet the school funding formula, services for the autistic, and
a cut in Charity Care funding for hospitals and a reduction in NJ
Transit funding.
Sister Patricia Codey — the president of Catholic HealthCare
Partnership of New Jersey and sister of state Sen. Richard Codey
(D-Essex) — said it makes no sense for the state to cut $25 million from
the Charity Care program, while giving the same amount to University
Hospital in Newark, which was set to lose more than $23 million funding
under the Charity Care formula.
“Why should every hospital in the state be subject to the Charity
Care formula and University Hospital be given special treatment at the
expense of other safety net providers. Is this fair?” Codey said.
Montclair State University President Susan Cole said she’s thankful
for an infusion of borrowed money to help schools build infrastructure,
but called the way the budget distributes higher education funding
“appalling.”
“There are huge inequities in how the campuses are treated with no
rationale whatsoever, and there continues to be appropriation without
policy,” Cole said. “This is a situation I have talked to you about for a
number of years, but unfortunately we are still there.”
Joan Migton, a parent of an autistic daughter and member of the
Supportive Housing Association of New Jersey, urged the committee to
increase funding for “shelter workshops” where the developmentally
disabled can do contract work for businesses. Migton said the workshop
her daughter attends needs more funding, and she’s afraid the state will
eventually stop paying for them because they’re not eligible for
federal Medicaid dollars.
“Sheltered workshops offer individuals with disabilities a safe
environment where they can be productive and do actual contract work for
local businesses,” Migton said. “A well run workshop is an appropriate
setting for my daughter who has some work skills but does not know how
to keep herself safe in a public workplace and could wander off with
anyone.”
David Peter Alan, who chairs the Lackawanna Coalition — a transit
rider advocacy group — said the proposed budget cuts NJ Transit by $13
million.
“The riders have to make that up, either through increased fares or
transit cuts,” Alan said, adding that it’s particularly unfair after
riders endured a 25 percent fare increase in 2010. “We believe it was
unfair to do that, to single out transit riders to pay so much more.”