COLUMBIA, S.C. — Gov. Mark Sanford today vetoed a bill that would have increased the state's cigarette tax by 50 cents.

In applying the veto, Sanford claimed that the money raised by the tax would lead to future tax increases.

The legislature had earmarked the $158 million a year to to expand Medicaid and other healthcare programs.

"While I'd applaud the General Assembly for finally moving a cigarette tax proposal to my desk, I can't in good conscience sign off on something that both increases the overall tax burden, and is completely irresponsible in the way it expands a host of Medicaid benefits without any way to pay for them in future years," Sanford said in a statement.

The tax increase would generate $158 million a year. Of that money, $76.5 million is being used to expand Medicaid benefits. Based on current Medicaid growth numbers of eight percent annually, $165.2 million will be needed to provide that same level of benefits 10 years from now - a plan the governor said was one more example of unpaid for future political promises. The governor had called for the money instead to be used to cut another tax, preferably the income tax.

During the news conference, the governor showed the following video: http://www.youtube.com/watch?v=WxI4Q-4rbbY, a tongue-in-cheek look at the mistake of tying healthcare coverage to cigarette tax revenues. The video can also be found at www.youtube.com/governorsanford.