SOUTHFIELD, Mich. (WXYZ) — Michigan Gov. Gretchen Whitmer's proposed tobacco tax increase is sparking mixed reactions across metro Detroit, as business owners and consumers weigh the potential impact on their wallets and livelihoods.
Watch Simon Shaykhet's video report:
I traveled from Oakland County to Wayne County to gauge public opinion on the governor's budget proposal, which calls for significant increases to taxes on tobacco products. The plan aims to raise hundreds of millions of dollars for health care and quality of life improvements.
"This is something that someone chooses to do," said customer Kisha Lahaie, defending the proposed tax increase.
However, not everyone agrees. One smoker I spoke with expressed skepticism about the plan's effectiveness.
"Raising state money, I don't think that's going to help," the person said.
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The proposed "sin tax" has business owners particularly concerned about their bottom line. Danny, a manager at Park Place Wine Shop in Southfield, worries about the impact on sales. He's concerned people will stop buying products.
Michigan currently has a $2 per pack cigarette tax, which ranks as the second lowest in the Great Lakes region, according to the State Budget Office. Retailers told me customers are already shifting away from cigarettes and toward vape products.
The cigar industry is also on alert. At Did It My Way in downtown Detroit, where loyal customers enjoy cigars and spirits daily, partners are hoping for minimal disruption to their business.
"It gets very busy. We are hoping it doesn't cause too much of a drastic change," one partner said.
Lawmakers on both sides of the aisle are weighing in on whether the revenue would be put to best use. Some question funding priorities while others worry about border business impacts.
"I'd like to see it go toward health care, but we have so many needs that didn't get met. Forgotten Harvest. 10 million. Focus Hope 1.5," Rep. Karen Whitsett, D-Detroit, said.
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Sen. Joe Bellino, R-Monroe, referenced historical precedent, noting the impact of previous tax increases.
"When they raised cigarette taxes in the early 2000s, people on the border here were decimated. My store was 15 miles from the border. I lost 25% of business overnight," Joe said.
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Whitmer's proposal also includes boosting taxes on pipe tobacco, dip and snuff to 57%. The governor has said this would help discourage nicotine addiction while generating revenue for health care costs.
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