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To reduce smoking and combat budget deficits, five states will implement cigarette tax increases on July 1

The five states are: New York, $1.60 increase to $4.35 per pack; Hawai'i, 40 cents to $3 per pack; New Mexico, 75 cents to $1.66 per pack; South Carolina, 50 cents to 57 cents per pack; and Utah, $1 to $1.70 per pack. On May 1, Washington increased its cigarette tax by $1 to $3.025 per pack.

New York's increase will give it the highest state cigarette tax at $4.35 per pack, while South Carolina's increase - its first since 1977 - means it will no longer have the lowest cigarette tax in the nation.  Missouri will now have the lowest cigarette tax at just 17 cents a pack.  After the July 1 increases, the average state cigarette tax will be $1.45 per pack, while the federal government levies an additional $1.01 per pack.

Also taking effect this week, a new federal law will curb tobacco tax evasion and curtail sales of low-cost cigarettes and other tobacco products over the Internet and through the mail.  As required by the law, the Prevent All Cigarette Trafficking (PACT) Act, the U.S. Postal Service on Tuesday will institute a ban on mailing tobacco products (with very minor exceptions).  The law also requires Internet tobacco sellers to pay all applicable taxes and affix tax stamps before delivery to any customer; requires that age and identification of purchasers be checked at both purchase and delivery; and provides government officials with new tools to crack down on tobacco tax evasion.

"These actions to increase tobacco taxes and prevent tax evasion are a huge victory for the nation's health that will save many lives and billions of dollars in tobacco-related health care costs," said Matthew L. Myers, President of the Campaign for Tobacco-Free Kids.  "Higher tobacco taxes continue to be a win-win-win for the states - a health win that reduces smoking and saves lives, a revenue win that helps balance budgets and fund critical programs, and a political win that is popular with voters.  We applaud the state and federal officials who have supported these important measures."

The evidence is clear that increasing the cigarette tax is one of the most effective ways to reduce smoking, especially among kids.  Scientific studies show that every 10 percent increase in the price of cigarettes reduces youth smoking rates by about 6.5 percent and overall cigarette consumption by about four percent.  The combined effect of the state cigarette tax increases approved so far this year will be to:

  • Prevent more than 262,000 kids from starting to smoke;
  • Spur more than 140,000 adult smokers to quit;
  • Prevent more than 120,000 smoking-caused deaths;
  • Produce more than $5.9 billion in long-term health care savings;
  • Raise more than $561 million in annual revenue.

States with the lowest cigarette tax rates are Missouri (17 cents per pack), Virginia (30 cents), Louisiana (36 cents), Georgia (37 cents) and Alabama (42.5 cents).

The Campaign for Tobacco-Free Kids urges all states to increase tobacco taxes as a proven way to reduce smoking and other tobacco use, save lives and raise revenue.  The Campaign also urges states to use more of their tobacco tax and tobacco settlement revenues to fund tobacco prevention and cessation programs at levels recommended by the U.S. Centers for Disease Control and Prevention.

Tobacco use is the leading preventable cause of death in the United States, killing more than 400,000 people and costing $96 billion a year in health care costs.  Every day, another 1,000 kids become regular smokers - one-third of them will die prematurely as a result.

More information on tobacco taxes, including tax rates in each state: http://www.tobaccofreekids.org/reports/prices/

More information on the PACT Act: http://www.tobaccofreekids.org/reports/internet/

June 30, 2010 / category: Taxes / link / comments (0)
The following is a statement of Matthew L. Myers, President, Campaign for Tobacco-Free Kids:

The D.C. Council has taken an important step to protect the District's kids and taxpayers from the devastating toll of tobacco use by increasing the cigarette tax by 50 cents to $2.50 per pack - the seventh highest cigarette tax in the nation. We applaud the City Council for its unanimous support of this life-saving proposal, and we look forward to Mayor Adrian M. Fenty signing it into law.

At the same time, the Council missed an opportunity to renew funding for the highly successful DC Tobacco-Free Families tobacco prevention and cessation program. Without action, funding for this program will largely expire at the end of September. To enhance and sustain the benefits from the tax increase, D.C. leaders should act quickly to provide the needed funds.

Higher tobacco taxes are a win-win-win solution for the District of Columbia - a health win that will reduce tobacco use and save lives, a financial win that will raise revenue for critical programs, and a political win that polls show is popular with the voters. With the increase, the District of Columbia will join 11 states that have increased their cigarette taxes this year.

The evidence is clear that increasing the cigarette tax is one of the most effective ways to reduce smoking, especially among kids. Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by 7 percent and overall cigarette consumption by about 4 percent. The District of Columbia can expect the 50-cent cigarette tax increase to prevent more than 1,300 kids from smoking; spur 1,000 smokers to quit for good; save more than 600 residents from future smoking-caused deaths; produce $32.3 million in long-term health care savings; and raise about $3.6 million a year in new revenue.

With the District of Columbia increase, the average state cigarette tax will be $1.32 per pack. Rhode Island has the highest state cigarette tax at $3.46 per pack. Twelve states and the District of Columbia have cigarette tax rates of at least $2 per pack, and 27 states and D.C. have cigarette tax rates of at least $1 per pack.

Tobacco use is the leading preventable cause of death and disease in the District of Columbia, claiming 720 lives each year and costing the District $243 million annually in health care bills, including $78 million in Medicaid payments alone. Government expenditures related to tobacco amount to a hidden tax of $602 each year on every District of Columbia household. While the District of Columbia has made some progress in reducing youth smoking, 10.6 percent of District of Columbia high school students still smoke and 400 more kids become regular smokers every year.

SOURCE Campaign for Tobacco-Free Kids

August 6, 2009 / category: Taxes / link / comments (0)
Today, the Florida state tobacco tax will increase by $1.00, the biggest of its kind in Florida history, to a total of $1.34 per pack, as part of the Protecting Florida's Health Act. The pressures of a higher price tag on cigarettes may prompt Florida smokers to try and quit spontaneously.

New data published in the journal, Nicotine and Tobacco Research, shows that many U.S. quit attempts are unplanned and these types of attempts can be a successful route to cessation. In the study, almost 40 percent of subjects reported that their most recent quit attempt started without any advance planning, suggesting that for some smokers, setting an advance quit date may not be as necessary as once thought.

"The study examines the possibility that while quit attempts may seem like spontaneous efforts on the surface, they may actually be the result of prolonged subconscious dissatisfaction with or concern about one's smoking. The results do not discredit planning out a quit attempt, however, a smoker needs to determine what may be the best approach to ensure long-term cessation," said Dr. Saul Shiffman, professor in the departments of psychology and pharmaceutical science at the University of Pittsburgh and study co-author. "All smokers should consider ways to manage tough situations such as cravings and withdrawal symptoms to ensure long-term success."

Smokers who make an unplanned quit attempt can improve their chances significantly by getting help and support from proven stop smoking tools such as therapeutic nicotine products like Nicorette(R), NicoDerm(R) CQ(R) and Commit(R). Consistent with their FDA-approved labeling, therapeutic nicotine products help reduce nicotine withdrawal symptoms, including nicotine craving, associated with quitting smoking. Smokers who quit spontaneously can also access therapeutic nicotine medicines which are available over the counter without a doctor's prescription at more than 35,000 retail outlets.

To encourage smokers to pick the approach best for them, whether they're spontaneous quitters or planners, GlaxoSmithKline Consumer Healthcare and the American Cancer Society, Florida Division, are teaming up to offer starter packs of Nicorette through the Florida QuitLine at 877-U-CAN-NOW (877-822-6669). The QuitLine is a smoking cessation service offered by the State of Florida for its citizens, and the GlaxoSmithKline Consumer Healthcare-provided starter packs will augment a significant allocation of nicotine replacement therapy products funded by the Florida Legislature.

"With tobacco being the leading preventable cause of death and disease in Florida, this significant increase in the price of cigarettes gives the state an excellent opportunity to reduce smoking rates and improve public health," said Marty Larsen, chairman of the board and president of the American Cancer Society, Florida Division. "We are dedicated to helping Florida smokers manage the challenges of quitting smoking. By providing safe and effective cessation aids, like therapeutic nicotine, all smokers looking to quit - spontaneous and planners - have the opportunity to re-evaluate continued smoking and finally quit for good."

About the Study

A study of 1,700 adults (900 adults age 18 and over who currently smoke cigarettes every day and 800 adults, age 18 and over, who previously smoked every day but quit between one month and ten years ago) were recruited from an online U.S. market research database (Survey Sampling International, Shelton, CT) and completed an online survey. A random sample of people in the database panels were sent an e-mail that contained a link to an online survey.

About Florida's QuitLine

Florida's QuitLine is a toll-free, telephone-based tobacco cessation service available at 877-U-CAN-NOW. Anyone living in Florida who wants to quit smoking can use the QuitLine, which offers counselling sessions, self-help materials and pharmacotherapy assistance. The State of Florida contracts with the American Cancer Society to provide the service.

SOURCE GlaxoSmithKline Consumer Healthcare

July 7, 2009 / category: Taxes / link / comments (0)

The Florida Legislature has taken an important step to protect the state's kids and taxpayers from the devastating toll of tobacco use by increasing the state cigarette tax for the first time since 1990. The $1 cigarette tax increase, to $1.34 per pack, is a win-win-win solution for Florida -- a health win that will reduce tobacco use and save lives, a financial win that will raise critical new revenue for health improvements, and a political win that polls show is popular with the voters. The Legislature also voted to increase the tax on most other tobacco products. We applaud the Legislature, especially the senators who initially proposed it, for supporting this life-saving proposal, and we urge Governor Charlie Crist to sign it into law.

The evidence is clear that increasing the cigarette tax is one of the most effective ways to reduce smoking, especially among kids. Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by 7 percent and overall cigarette consumption by about 4 percent. Florida can expect the $1 cigarette tax increase to prevent some 165,800 kids alive today from smoking; spur 100,500 smokers to quit for good; save nearly 79,600 residents from smoking-caused deaths; produce $3.8 billion in long-term health care savings; and raise about $631 million a year in new state revenue.

Counting Florida's increase and recently approved increases in Hawaii and Mississippi, the average state cigarette tax would be $1.27 per pack. Rhode Island has the highest state cigarette tax at $3.46 per pack. Twelve states and the District of Columbia have cigarette tax rates of at least $2 per pack. If the Florida legislation becomes law, 27 states and D.C. would have cigarette tax rates of at least $1 per pack.

Tobacco use is the leading preventable cause of death and disease in Florida, claiming 28,600 lives each year and costing the state $6.3 billion annually in health care bills, including $1.2 billion in Medicaid payments alone. Government expenditures related to tobacco amount to a hidden tax of $585 each year on every Florida household. While Florida has made progress in reducing youth smoking, 14.5 percent of Florida high school students still smoke and 22,700 more kids become regular smokers every year.

We call on states across the nation to follow Florida's lead and significantly increase their own state cigarette taxes to keep more kids from smoking and help current smokers quit.

SOURCE Campaign for Tobacco-Free Kids

May 12, 2009 / category: Taxes / link / comments (0)

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