National Health Organizations Challenge Governors: Increase Excise Tax on Cigarettes, Save Lives

2/25/2002

From: Citigate Communications, 312-944-7398

WASHINGTON, Feb. 25 -- A national coalition of public health organizations today saluted governors who have proposed increasing their states' cigarette excise taxes and challenged governors and legislators in every state to increase cigarette taxes by a substantial amount.

The health groups called cigarette tax increases a "win-win-win solution" for states that reduces smoking and smoking-caused health care costs, raises revenue for states facing budget shortfalls and is popular with the public. In recent years, several states have increased their cigarette tax, and as economic research predicts, they have reduced smoking, especially among youth, while increasing tax revenues.

"We have a tremendous opportunity to dramatically impact health behaviors and create a steady revenue stream," said Thomas Houston, M.D., co-director of the SmokeLess States National Tobacco Policy Initiative, American Medical Association. "Today, we are recognizing several governors for supporting an increase in the cigarette excise tax, and we are challenging others to follow their lead by raising cigarette excise taxes in their states."

Participating in the national news conference were representatives of several of the nation's leading health care advocacy groups including:

-- Thomas Houston, M.D., co-director, SmokeLess States National Tobacco Policy Initiative -- Ron Davis, M.D., member, Board of Trustees, American Medical Association -- John Kirkwood, president and chief executive officer, American Lung Association -- Bill Corr, executive vice president, Campaign for Tobacco-Free Kids -- Katherine Krause, executive vice president of advocacy, American Heart Association -- Frank Chaloupka, Ph.D., professor of economics, University of Illinois at Chicago, and research associate, National Bureau of Economic Research

"Increasing the excise tax on cigarettes is an effective way to reduce smoking among youth and adults, and save lives," said Dr. Ron Davis of the American Medical Association. "Studies show every 10 percent boost in the cost of a pack of cigarettes will reduce youth smoking by approximately seven percent and overall cigarette consumption by three to five percent."

Support for cigarette tax increases comes from around the country, and from political leaders of all major parties. Washington State voters in November overwhelmingly approved a 60-cent tax increase that increased that state's tax to $1.425 per pack. In New York, a 39-cent cigarette excise tax increase was passed that will make its tax the highest in the nation at ($1.50 per pack) when it goes into effect April 3.

"Smoking is the leading cause of preventable death in this country," noted John Kirkwood of the American Lung Association. "A simple, politically viable and fiscally smart solution to this public health crisis exists in the form of higher excise taxes on cigarettes and other tobacco products."

"Governors and lawmakers across the country are recognizing that increasing the cigarette tax is good public health policy, good fiscal policy and good politics. Poll after poll shows that voters overwhelmingly support cigarette tax increases because they realize it is an effective way to reduce smoking and smoking-caused health costs, while raising much-needed revenue to balance budgets and fund vital programs," said Bill Corr, executive vice president of the Campaign for Tobacco-Free Kids.

The nation's governors were in Washington, D.C. to attend the National Governor's Association Winter Meeting. SmokeLess States and its national partners have urged states to adopt higher taxes as part of their overall public health strategy because they reduce teen smoking rates and smoking rates among other groups. Support for raising the cigarette excise tax also runs high among voters in most states, even among smokers and former smokers.

------ Spokespeople from the SmokeLess States National Tobacco Policy Initiative, and other participants from today's news conference, are available to discuss the Tobacco Tax Challenge, and the public health and fiscal benefits of raising the excise tax on cigarettes.