CIGARETTE TAX – Here’s 10% of your Budget Shortfall

Did you know:

• The U.S. Centers for Disease Control & Prevention estimates that smoking-caused health costs in the United States total $7.18 per pack of cigarettes sold.

• In Texas smoking-caused health costs and lost productivity costs are above the national average ($7.79).

• All Texas taxpayers carry the burden of $1.26 billion a year in Medicaid funding on direct tobacco-related health care costs. Since the majority of Texans do not smoke, nonsmokers pay for most of this cost.

• As smoking declines, so will related health care costs and their burden on the state budget and Texas taxpayers.

• A cigarette tax is a user fee paid only by those who smoke.

• A $1 per pack increase in the cigarette user fee would generate $1.5 billion in new revenue during the next biennium. (Texas Comptroller of Public Accounts)

Governor Mike Johanns (R-NE):  “Cigarette and tobacco use may be a choice, but every one of us pays for its use, either with our health or our pocketbooks, or both.” (Omaha World Herald, March 18, 2002) “I’ve pretty well signed off on a cigarette-tax increase for a number of reasons. One is obviously there are health-care issues with cigarette smoking. It does impact the Medicaid program. Money goes into the Medicaid program.” (NebraskaStatePaper.com, February 26, 2002)