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7 Senators Want To Raise Taxes on Cigarettes; 1 Doesn't E-mail Print
News Analysis
Written by Jac Perry   
Tuesday, 04 August 2009 15:48

Legislators

Find Out Who Said What (And Why)

By Jac Perry

GUAM - Several local senators have recently weighed in on the issue of raising taxes on tobacco products sold on Guam. While most senators we interviewed wholeheartedly support a tobacco tax hike and have agreed that increasing the cost of cigarettes is good for Guam's health, some disagreement remains about the proper way to entertain and implement a tax increase.

Since last Friday Guam News Factor has been reporting on developments surrounding Bill No. 150, legislation that seeks to raise taxes on both cigarettes and smokeless tobacco products. After the bill's public hearing and a call to action by Guam's medical community to raise these taxes substantially, some senators have come out full swing to support the medical community's suggestions.

The Factor offers this countdown of Guam senators who have publically declared their support for raising taxes on cigarettes and smokeless tobacco products and their reasons why.

(1) Sen. Adolpho Palacios [Yes To Tax Hike]

Senator Adolpho B. Palacios told GNF he plans to amend the bill to remove the referendum requirement and allow the legislation to become law "60 days upon enactment".

Over the past weekend, the Factor quoted Palacios as stating, "This is an urgent matter, the legislature should not wait. We should not have any problems without the referendum."

"The bill will accomplish two things, one, it will generate revenue to deal with the medical problems caused by smoking, and, two, it will heighten the challenge for people to smoke."

(2) Sen. Tina Muna-Barnes [Yes To Tax Hike]

By way of amendment, Senator Tina Muna-Barnes plans to boost the tobacco tax even higher than the current legislation proposes.

Here's the reason she gave Guam News Factor recently:

"As leaders we ought to make the decision our people are expecting of us. For this particular matter, the legislature must take action to increase the tobacco tax. The health and welfare of our people are paramount and if making tobacco products more expensive will keep it out of the hands of our people then I wholeheartedly support that."

Right now Bill 150, authored by Vice Speaker Benjamin J. F. Cruz, calls for a $2 increase per pack of 20 cigarettes as they are sold at Guam retail counters. Local doctors have called for raising the tax by as much as $3 to $5 per pack, with some sentiment saying 'the higher, the better.'

In addition, the bill requires "Residents to vote on the tax increase via referendum during the next General Election, held November 2, 2010, and will take effect 30 days after ratification by voters," According to a release from Vice Speaker Cruz's office when the bill was introduced in June.

GNF polled every senator on their positions on the proposed amendments. Here is what some senators reported.

(3) Sen. Frank Aguon, Jr. [Yes To Tax Hike]

Chairman on the Committee on Economic Development, Health & Human Services and Judiciary, Senator Frank Aguon, Jr. believes, "The people of Guam have elected members of the legislature to make decisions and to come out with measures like the increase of taxes on tobacco." Aguon is in favor of Palacios's proposed amendment to skip the referendum process.

On Muna-Barnes proposed amendment, Aguon said, "I support the voting for the proposed legislation because it deals directly with the health of the Guam residents. It is a win-win situation, it can prevent smoking-related diseases and we can have additional revenue for critical government programs."

(4) Sen. Frank Blas, Jr. [Yes To Tax Hike]

Senator Frank Blas, Jr. said he thinks there needs to be further discussion on where the proposed increases by Muna-Barnes will go and also desires discussion on how much the increase is going to be. "I believe [the increase] should be enough to curb the tide for smoking, however, I am concerned that if taxes are too high, there may be a threat of an underground market," Blas, Jr. said. "This is a public health issue I do not want it to become a law enforcement issue."

On Palacios's proposed amendment, Senator Blas, Jr. said, "I recognize the law requires measures that call for tax increases to go into referendum, however, this is not a tax that will affect the entire community, it will only affect smokers and the distributors of the products."

(5) Sen. Benjamin J.F. Cruz [Yes To Tax Hike, Qualified]

Vice Speaker Cruz, the bill's original author, was present at the public hearing last week. "I am not privy to testimony that was sent directly to the Chairman. If the committee report, when posted, states that the testimony provided supports immediate implementation without complying with the statutory requirement that tax increases be approved by the electorate, then I would go with the testimony," Cruz said.

"Similarly, if the report states that the testimony submitted supports a tax even greater than the original or substitute bills then I would also support that," Cruz added. "I am most concerned with the public's responses and await the published testimonies so that I can support their wishes."

(6) Sen. Jim Espaldon [Yes To Tax Hike]

Senator Jim Espaldon told GNF in an earlier interview that he was in support of an increase in tobacco taxes as high as those recommended by the medical community.

On the proposal to forgo the referendum, Espaldon expressed he may have to look closely at the legal technicality on skipping the referendum requirement, however he told GNF, "This is a public health issue, and the real foundation is not to raise taxes, but to change policy to deter adverse health issues and this is the one way to do it and therefore I am supportive of not including the referendum."

(7) Sen. Judi Guthertz [No To Tax Hike, Qualified]

Senator Judi Guthertz in an earlier interview told GNF she is in support of any measure to ensure a healthier and happier community. Guthertz also is in favor of doing away with the referendum process because she feels this is a major public health issue. "Guam has the nation's worse statistics for diseases resulting from tobacco use. We need to do something right away," Guthertz said. On the increase in taxes, Guthertz "believes in slow increments for any increase in taxes rather than a big jump at one time."

(8) Sen. Tom Ada [Yes To Tax Hike, Qualified]

Senator Tom Ada said he was not in support of Senator Palacios's amendment. Senator Ada explained, "The goal is to change people's smoking habits by making it too expensive to continue smoking. By making the tobacco tax increase a referendum issue, it will gauge the willingness of the community to get behind the effort to achieve this goal, and will give policy makers a better view of how to further deal with this problem."

Senator Ada also does support a further increase in tobacco taxes. He explained, "If raising the tobacco tax to some ‘higher' level will assure a significant decrease in smokers then we should increase it to where maximum effect can be achieved. If not, then the tax should be raised to a level that would adequately support related health programs. Having been a former smoker for over 30-years, I'm not convinced that habitual smokers (will) quit because it has become too expensive. Instead, the combination of education on the effects of smoking, the de-glamorization of smoking, and other life-changing experiences will contribute more to achieving the desired goals," Ada said.

Senators Yet To Respond

Speaker Judi Won Pat, Senators Rory Respicio, Matt Rector, Ben Pangelinan, Eddie Calvo, Ray Tenorio and Telo Taitague have not responded on their positions yet.

Guam News Factor will continue to report on the each senator's position as their responses are received.

Jeff Marchesseault and John Dela Rosa contributed to this report.

Read the Guam News Factor story, "Tax Guam Cigarettes Even More!", August 3, 2009.

Read the Guam News Factor story, "Senator Palacios: Skip Referendum, Raise Guam Cigarette Taxes Now!", August 1, 2009.

Read the Guam News Factor analysis, "Breaking The Deadly Grip Of Tobacco Addiction".

Read the Guam News Factor story, "Guam Doctors Urge Senators To Support Tobacco Tax Hike".

Read the Guam News Factor story, "Guam Tobacco Expert To Cigarette Wholesalers: Carry The Product, Bear The Burden".

Read the Guam News Factor story, "'Divided Doctors' Unite To Raise Guam's Tobacco Taxes".

Read the Guam News Factor story, "'Raise Tobacco Taxes Now!' A Cancer Doctor Tells Us Why".

Search Guam News Factor for more related stories with key words, "tobacco", "cigarette", "smoking", or "tax".



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YouToos  - YouToos   |2009-08-04 17:22:24
Now I've heard everything! So, Sen. Ada is an expert. He heard the real
experts ALL say that raising taxes is the only way to cut smoking. But, HE is
not convinced. Has he done any research? Hmmmm, Sen. Ada....ummm...lowest prices
for cigs in the U.S. and highest rate of smoking. Yeah, your right...no OBVIOUS
connection. New York raised taxes and people quite. Oh, just luck! What is
his connection to the tobacco industry? THAT is the real question!
PLTenorio  - PLTenorio   |2009-08-04 17:32:33
How stupid can you get? Higher prices on anything makes people buy less. Dr.
David said the poor and teens will smoke less and fewer will start. I like her.
She is smart and does her research. I do not know how Ada got elected if he
can't see how this will help the people who elected him. God Bless BJ and God
help Ada.
GuamNewsJunky  - GuamNewsJunky   |2009-08-04 18:57:43
Yo PL Tenorio ( ?? is that you Pete?) you are the dumb one . Two easy
to understand reasons: Tom lost to BJ in the special election. You really think
he gives a cr*p about the health of voters? Nope, he will not support something
that is going to help BJ. No way, no how. Some dinky little bill, maybe. Not
an issue this big. He will not support this one. It is one of BJ's big bills.
He also does not want to piss off the Calvo's. Calvos and Adas go way back.
They feed on the poor together. That's the other reason. This far out he
presumes voters will forget. I'm guessing with cancer being so important they
will not forget.
Notable  - Mr.   |2009-08-04 19:10:48
Senator Tom Ada is from a well connected family. A recent calculation showed
local cigarette distributors raked in at least $213 million in gross revenues in
2008. That is if a pack only cost $2.00 Money, my fellow islanders, money rules
all his votes.
Roji  - Higher Prices On "ANYTHING" Makes People Buy Les   |2009-12-02 22:51:09
Whoa, there, Smarty-Spanky! Are you a smoker? I believe not. Have you ever heard
of the dirt tastin' cheap cigarettes on the market? A person smoking Marlboros
will opt for a cheaper brand. Then, you'll have tons of people smuggling in
cheap Marlboro counterfeits from China to CNMI then by ferry to Guam. Or,
smokers will get their daily inhalants from friends who have access to the
military bases' "Class Six" stores. A few will stop or slow down, but
not all just 'magically' quit. Its just gonna make smokers more hateful of
people, like you, who do not understand how hard it is to quit, and force us
smokers to feel like dirt bags. I agree with Sen. Guthertz in combination of
Sen. Ada's additional programs. Raising a major tax on tobacco will raise
resentment. Raising tax in increments and using those money for programs to help
smokers quit will do better. Trust me, raising a pack of cigarettes will make
tons of money for smugglers and alike. Its actually happening in New York, Mr.
wise guy.
Roji  - Clarification.   |2009-12-02 23:08:43
Just to let readers know. My comment is not to praise the Senators I agreed with
or paraphrased because I'm in favor of them. I don't care about their political
agenda nor any of their BS. I'm merely pointing out my view as a smoker.
Everyone here seems to be one sided. I know smoking is bad for my health, but do
you know how hard it is to quit?

Step Up To The Plate said tobacco gross
income for Guam 1B/yr. Why don't we make these business shell out money
for anti-smoking programs and smoking health related services?
TameGu  - TameGU   |2009-08-05 05:17:29
Why the hell isn't this covered in the PDN? Are they worried about the tobacco
companies? I guess they are all connected. Makes me sick. The low tobacco taxes
on Guam should be our Island shame. This really is disgusting. People are not
votes. Who is going to vote to keep profits above cancer? I WANT TO KNOW!!!!
Ada is an idiot.
Gtraes  - Gtraes   |2009-08-05 06:46:16
Speaker Judi Won Pat, Senators Rory Respicio, Matt Rector, Ben Pangelinan,
Eddie Calvo, Ray Tenorio and Telo Taitague have not responded on their positions yet.

So.....call them back and get an answer.
Step Up to the Plate  - I want an answere.   |2009-08-05 07:04:21
Why haven't they responded! Will Eddie Calvo not vote because he has an
interest in the cig market. Conflict of intrest or just his personal wallet. I'm
sorry, the LARGEST intrest in the tobacco market. 1 billion/yr
I have family
smoking with poor health, deaths and so on. Vote against it. I dare them. I
will be on the radio everyday. "DO NOT vote for these Sen who truely do not
care about our people.
onetimegunner  - onetimegunner   |2009-08-05 08:28:39
Gtraes is right on. Do not let them hide. This is all about money and it
should be about people. Write it every day. Who is responding and who is not.
*&*%$## them. Sorry. But that is how I feel.
Gtraes   |2009-08-05 06:51:24
TAX THE SELLERS!!!!
Power  - Step Back   |2009-08-05 07:24:01
We need to respect the senators and give them time to make the right choices for
Guam. This issue is too complex for the little people of Guam. That is why we
elect the educated people to think for us.
brian   |2010-01-04 18:34:20
Educated like Madeline
GCCgrad  - GCCGrad   |2009-08-05 14:11:02
Cancer kills, cigarettes cause cancer. Cheap cigarettes means more smokers.
Please just do the right thing. Enough!
Strong Guam  - Econ   |2009-08-06 09:13:49
GCC Grad - Must have studied Economics. Could you help the Senators - Please
PaintBaller  - PaintBaller   |2009-08-06 01:32:24
I almost chocked. Tom Ada is a fool. Look at what he said. He said it is not
making the cigarettes cost a lot more that will stop kids from starting. it is
"and other life-changing experiences will contribute more to achieving the
desired goals". What? Like a brother dying from cancer? He is getting
money from tobacco somehow. He is rich and the rich stick together. I say vote
him out if he keeps it up. Guthertz is just a wimp. Raise it up girl. A little
at a time the smokers can handle. A big raise and they will quit. That IS THE
POINT. She is actually pretty good. But she got it wrong here.
Strong Guam  - open your EYES!!!!!!   |2009-08-06 09:11:47
I will remeber you (Ada/Guth) at election time. Do not try to make the
"Fragile Economy Excuse" If we are dead - who is a good vs bad economy
for?
The rich stick together. You need to have it stuck to you - out of
OFFICE. You make me sick!!!!!
Poor Guam  - We Always Forget   |2009-08-11 06:45:12
Why is it at election time; we all forget how selfish and money grubbing these
ELECTED official are during their terms. GUAM, wake up, write it down and look
back when it is time to get some new blood in office. M. Cruz is a step in the
write direction. He truley has Guam's intrest in mind.
SMAFER  - Our Leaders   |2009-08-17 06:01:58
Tom Ada - Fareweather Senator, it doesn't matter what you do or say or how many
times you change your mind. We know what you are truley about. Sick of your
crap. Get out of Office!
brian   |2010-01-04 18:31:42
Stop voting for family members or special interest Pare and vote for the guy who
sticks out like a sore thumb he's usually the right guy because he's going
against the corruption not addding to it.
brian   |2010-01-04 18:28:45
Guam needs revenue, smoking is unhealthy. It's a simple and sound judgement
call. Raise the tax.

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