Beshear Stands By 70 Cent Cigarette Tax Hike Proposal

FRANKFORT, Ky. (AP) - Gov. Steve Beshear says he's standing by
his proposal to boost the state's tax on cigarettes to $1 per pack,
despite opposition from Democratic House legislators.
Beshear says there would be more support among rank-and-file
House members if the Democratic leadership pushed the idea. Still, Beshear says he's willing to keep talking with lawmakers crafting a version of Kentucky's next two-year spending plan.
Kentucky's facing a $900 million revenue shortfall.
Beshear wants to close the gap by raising the cigarette tax by 70 cents per pack. A plan by House Democrats seeks to raise the tax by a quarter and raise taxes on certain services.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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