Proposition 29 Looks Like A Loser

LOS ANGELES (AP) — A California ballot initiative that pitted big-spending tobacco companies against cycling legend Lance Armstrong and New York City Mayor Michael Bloomberg looks like it will be defeated.

In a testament to the power of a month-long onslaught of radio and television campaigns financed by tobacco companies, the vote on whether slap an additional $1-per-pack tax on cigarettes and other tobacco products to fund cancer research was too close to call much of the night.

For much of the night, it looked as though voters would approve the initiative but with 100 percent of the precincts reporting, 50.8 percent opposed Proposition 29 and 49.2 percent supported it.

The attempt to increase cigarettes taxes in the nation's most populous state has attracted nationwide attention, with tobacco companies pouring in millions to quash the effort and celebrities urging voters to support it.

Tobacco taxes have been proven to reduce smoking. But opponents said the initiative would create an unaccountable bureaucracy and hurt the economy by sending tax money raised in California to other states.

An extra tax in the state also would mean major losses for tobacco companies.

Supporters said the tax revenue would stay in California and create jobs. They said tobacco companies are inventing arguments to obscure their true motive — safeguarding profits.

Armstrong and a coalition of anti-smoking groups raised about $18 million to bolster the measure. New York City Mayor Michael Bloomberg gave $500,000 to the campaign to help offset the industry donations.

The tax would have generated about $735 million a year in revenue, according to the independent legislative analyst's office.