IT’S TIME TO LIGHT UP SUPPORT FOR A CIGARETTE TAX INCREASE

No matter how bad the state budget picture looks, few under the Capitol dome want to be the first to admit what’s quickly becoming apparent to those on the outside – the state cannot overcome a $9.9 billion budget gap through spending cuts alone.

In a recent Texas Poll, three out of four Texans say they aren’t confident lawmakers can balance the budget without raising taxes. 

It’s time for state leaders to seriously consider increasing one specific tax – the cigarette tax.  Texas’ cigarette tax of 41 cents per pack has not risen since 1990, when Republican Governor Bill Clements, himself burdened with a state recession, signed it into law. 

In three polls over the past year, Texans overwhelmingly said they prefer increasing the cigarette tax to address a state budget deficit, if a tax must be passed.  Across the country, other governors consider the cigarette tax an acceptable exception to a “no new taxes” pledge.

A cigarette tax increase is a win/win for all Texans. Really more of a user fee, it has the triple advantage of boosting Texans’ health, bringing in badly needed new money, and enjoying widespread public acceptance. 

As physicians, we are keenly aware that a cigarette tax increase because it improves health and saves lives. Higher prices will force some smokers to quit and keep others, particularly children, from ever becoming addicted. A $1 per pack increase will prevent 291,800 children from becoming smokers and save 93,300 from premature smoking-caused death, according to the Campaign for Tobacco-Free Kids.

Even more lives would be saved if just 5 cents of a $1 per pack increase were dedicated to create statewide smoking prevention and cessation programs. While such programs have been highly successful in limited trials, they have never been funded statewide.

A cigarette tax increase both generates and saves valuable state revenue. A $1 per pack hike will bring in $1.5 billion in new revenue for the next biennium alone, the Comptroller of Public Account estimates

In addition, as smoking declines, the state will spend less on long-term health costs and related expenses.  All taxpayers, whether they smoke or not, pay for these programs, including $1.26 billion in smoking-related costs covered by Medicaid.

Some argue that if smoking declines, less tax revenue will be generated. But cigarette consumption declined and tax revenue grew in all 17 states that raised cigarette taxes between 1995 and 2000.  In most cases, tax collections exceeded official predictions.

It’s time for Texas to join the 25 states – half the nation – that have implemented or passed higher cigarette tax rates since January 2002.  Across the country, governors – both Republican and Democrat – consider the cigarette tax an acceptable exception to a “no new taxes” pledge.

The advantages of raising the cigarette tax are clear. New state revenue.  Healthier Texans.  Fewer tobacco-related deaths.  Reduced burden on taxpayers.

The arguments against a cigarette tax increase are quickly going up in smoke.

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Authors of this column are: Ronald J. Anderson, M.D., president and CEO, Parkland Hospital; Ronald R. Blanck, D.O., president, University of North Texas Health Science Center; Michael E. DeBakey, M.D., president emeritus, Baylor College of Medicine; Nancy W. Dickey, M.D., president and vice chancellor for health affairs, The Texas A&M University System Health Science Center; Ralph D. Feigin, M.D., past president, Baylor College of Medicine; Charles A LeMaistre, M.D., president emeritus, The University of Texas - M.D. Anderson Cancer Center; and David R. Smith, M.D., chancellor, Texas Tech University Health Sciences Center.

CONTACT INFORMATION (for verification purposes):

Carol Ames
Office of Nancy W. Dickey, M.D.
President and Vice Chancellor for Health Affairs
The Texas A&M University System Health Science Center
(979) 458-0800

or

Kirsten Voinis
K. Voinis Communications
Austin, Texas
(512) 918-2970 or (512) 922-7141
kvoinis@austin.rr.com