Compromise tobacco tax plan detailed

Tuesday, May 11th 2004, 5:05 pm

By: News On 6

OKLAHOMA CITY (AP) -- Gov. Brad Henry outlined details Tuesday of what the governor's office described as Henry's "final" compromise package on raising tobacco taxes and expanding health care.

The plan incorporates the governor's tax-cut program, eliminating the capital gains tax on Oklahoma property -- a $38 million reduction in the second year, and cuts income taxes of retirees.

It is expected to go to a vote in the House and Senate next week.

"It's time to let Oklahomans know where everyone stands on health care," Henry said. "A yes vote will dramatically improve health care opportunities for generations to come and reduce costs for businesses and consumers alike."

He said a "no" vote "will simply preserve the status quo and relegate us to a broken system that costs Oklahomans millions of dollars each year."

The package would raise the cost of a pack of cigarettes by a net of 55 cents a pack, compared with Henry's earlier proposal of 52 cents per pack.

That would raise $140 million for state health care needs. A majority of those dollars would be matched with federal funds, producing as much as $400 million for Oklahoma's health care system.

The compromise would devote $50 million for premium assistance for business to increase medical coverage of employees and $50 million to improve Medicaid health care rates paid to doctors and other health care providers.

It sets aside $8.5 million for trauma care, $7 million for debt service to create a $75 million world-class cancer research center, $6 million to expand adolescent substance abuse treatment and $5 million for reimbursements to city-county hospitals.

Also, $2.5 million for a federal waiver for developmentally disabled children, $2 million for increased reimbursements to emergency room physicians and $1 million for youth tobacco cessation efforts.