Resolution could hike cigarette, liquor tax rates; Proposal aims to make up shortfall in Medicaid funding in Mississippi

Tax increases on liquor and cigarettes were added Friday to a growing list of possible ways to take care of the Division of Medicaid's multimillion deficit.

Narrowly approved by the Mississippi House, Senate Concurrent Resolution 655 - which would allow a new bill to be drafted past the deadline - was amended to include statute sections that could implement the proposed tax increases.

But how the changes will go over across the hall remains to be seen, as many key senators have maintained raising the tobacco tax should wait until another year.

The measure, which required a two-thirds vote because bill deadlines have passed, was approved with 81 representatives in favor and 38 against.

It could be up for more debate before heading back to senators for concurrence.

Read the full article by Leah Rupp in April 5, 2008 edition of The Clarion -Ledger http://clarionledger.com/apps/pbcs.dll/article?AID=/20080405/NEWS010504/804050356/1205/NEWS010504