Clinton Plans Cigarette Tax Boost to Cover New Spending, Aide Says

President Clinton will propose paying for a series of domestic spending initiatives with a new 55-cent-a-pack cigarette tax, an administration official said Thursday.

The tax, which will surely be opposed by Republicans in Congress, would raise about $8 billion for the spending initiatives, said the official, who spoke on condition of anonymity.

In recent weeks, Clinton has touted a number of new ideas but avoided discussing how he would pay for them. For example, Clinton has proposed more money for after-school programs, new defense spending, tax incentives for long-term care and money to help people with disabilities go to work. Plans were announced Thursday for more money to fight crime and to aid people with mental illnesses.

Congressional Republicans have consistently warned Clinton against increased taxes, including those on cigarettes.

Last year, Clinton proposed paying for new domestic spending with a massive fine on the tobacco industry, envisioned as part of sweeping tobacco legislation. But that legislation fell apart, and the states settled lawsuits against tobacco companies on their own. The federal government argues that it has a right to some of that money because it pays at least half of each state’s Medicaid costs, and many of the state lawsuits sought to recover Medicaid expenses.