Ark. Governor Calls for Higher Cigarette Tax

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Ark. Governor Calls for Higher Cigarette Tax

By KSPR News

LITTLE ROCK, Ark. (AP) - Governor Beebe will ask lawmakers to raise the cigarette tax to help pay for setting up a trauma system. Beebe told reporters he plans to unveil the proposal during his state of the state address before the Legislature next Tuesday. He indicated he would call for an increase of at least 50 cents a pack.

The governor said $28 million from the hike could go toward establishing the trauma system, but could also go toward other health needs such as community health centers. Incoming legislative leaders Senator Bob Johnson and Representative Robbie Wills say they would support a tax hike.

Arkansas' cigarette tax is now 59 cents a pack, and cigarettes sell for about $4 a pack in the state.

Beebe said raising the tax another 50 cents would raise at least $71 million annually. Money from the tax would go into the state's general revenue.

Beebe said $28 million could pay for setting up and running three trauma centers. One of the Arkansas centers would likely be set up in Memphis, Tennessee -- at The Med -- to handle trauma care for east Arkansas.

Lawmakers supported the idea of a statewide trauma system during the 2007 session but failed to agree on a way to pay for it.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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