Minnesota Governor Tim Pawlenty has taken a big political risk:
After months of saying he would not agree to any statewide tax increases, Gov. Tim Pawlenty on Friday said he would break the budget stalemate with a proposal to increase the wholesale cost of cigarettes by 75 cents a pack, with the money going to health care and schools. …
While Pawlenty said he did not think his proposal to raise cigarette fees broke the no-tax-increase pledge he took as a candidate, one important critic differed -- the group that administered that pledge.
David Strom, president of the Taxpayers League of Minnesota, the lower-tax advocacy group that had Pawlenty publicly sign the pledge as a candidate, said that Pawlenty appeared to have gone back on his word.
"Is it a breaking of his pledge?" Strom said. "I think so. I don't see how this is a fee. One could put an impact fee on anything with this reasoning. What's next? A drinking-whole-milk impact fee? An eating-red-meat impact fee? This sure sounds like a tax increase to me."
Strom said that Pawlenty had just been named Hero of the Month for May by Strom's national parent group, American Taxpayers for Reform. "I suspect they'll be revising that now," he said. Moreover, he said, Pawlenty could find that any national political aspirations have fizzled.
A charge set by the government on a good with the purpose of raising revenue is a tax. This cigarette fee is a tax. I understand what Pawlenty is doing by calling it a fee. He's trying to save face while trying to do something that good politicians do - compromise. Pawlenty has been suggested as a candidate for national office and I admire his willingness to compromise, but this sort of wordsmithing gives his potential competitors a lot of ammuntion to use against him.