I'm going to start growing tobacco on my land, curing it and making cigarettes. Drive by the house, blow the horn twice, and I'll bring you out 10 packs in a plain paper bag.
COLUMBIA --- South Carolina legislators moved Thursday to increase the nation's lowest cigarette tax by 50 cents a pack to generate $139 million for a health insurance program for low-income workers.
The House gave the bill key second-reading approval with a 97-22 vote. Routine third reading today will send the bill to the Senate.
"We're real excited. One body down and it moves to the Senate now, and we'll see if we can keep the momentum moving forward," said Robbie Kerr, director of Covering Carolina Cooperative, a group that includes health insurers backing the bill.
The current tax is 7 cents a pack. It would increase to 2.5 cents for each cigarette in a pack, generating $147 million. That will create a $139 million fund to cover 75 percent of a health care policy for individuals who make up to roughly $21,600 a year. The maximum credit would be $3,000.
Employers with up to 25 low-income workers would get a 67 percent credit on insurance premiums for each worker. That would have the same limit.
The first policies would be issued in 2011 after the fund builds up reserves, Mr. Kerr said.
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