Tobacco tax approved in state Senate

OKLAHOMA CITY (AP) -- Gov. Brad Henry's plan to ask voters to raise tobacco taxes to bolster the state's health care system flew to final approval Friday in the Senate.<br/><br/>The vote was 39-8

Friday, May 21st 2004, 11:28 am

By: News On 6

OKLAHOMA CITY (AP) -- Gov. Brad Henry's plan to ask voters to raise tobacco taxes to bolster the state's health care system flew to final approval Friday in the Senate.

The vote was 39-8 to send the bill to Henry's desk.

The plan, which passed the House on Thursday, would cut the capital gains tax by about $35 million, reduce retirees' taxes and permanently lower the maximum income tax from 7 percent to 6.65 percent.

If approved by voters at the Nov. 2 election, the measure would raise $140 million for health care.

Much of the money would be matched with federal funds, producing up to $400 million to extend health insurance coverage to thousands of uninsured Oklahomans.

"This is a significant step forward for the health of Oklahoma," Henry said in a statement. "Voters now have an opportunity to approve a pro-business, pro-health, pro-consumer initiative that will greatly improve their quality of life."

"When the legislative session began, few people believed we could beat big tobacco and allow people to have their say on this issue, but thanks to a lot of hard work by many different people, we proved the political pundits wrong and prevailed."

He predicted voters would pass the measure.

"Don't let big tobacco kick you around any longer," Senate President Pro Tem Cal Hobson, D-Lexington said during debate. "They've owned this building for two many decades. They're out of business."

Some Republicans argued against the bill. Sen. Randy Brogdon, R-Owasso, said providing premium assistance to employers to cover more employees was "a giant step toward socialized medicine."

"It's going to be like a sniff of cocaine, a shot of heroin," Brogdon said, predicting that in future years more and more employers will ask for the government to help they pay for their employees' health care insurance needs.

Funds in the package also are dedicated toward building a cancer research center and beefing up the state trauma care system.

On Thursday, the House voted 66-33 for the plan, a vote Henry called "a victory for the people of Oklahoma and their right to decide the future of their health care system."

The House vote came after Republicans, by a narrow margin, lost a procedural battle to sidetrack the bill and send it back to a joint conference committee.

Health organizations lobbied for the bill, saying it would help keep health costs in check. The measure was opposed by tobacco interests and some retailers.

Craig Jones, president of the Oklahoma Hospital Association, said 600,000 Oklahomans have no health insurance.

"The cost of caring for the uninsured impacts everyone, in terms of higher health and premium costs," Jones said.

The new funding for trauma care will save lives, he said.