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Freitag, 05. Oktober 2012

Cigarette users inhale steep tax hikes

Von buycigarettes, 13:23

State surcharges on a pack of cigarettes vary widely, from 17 cents in Missouri to $4.35 in New York. But since 2000, only Missouri, North Dakota and California have not increased their cigarette taxes. In 2009 the federal per-pack tax soared too, from 39 cents to $1.01, raising $15.5 billion in 2011. But the federal government also spends $96 billion each year addressing health problems caused by smoking, according to the George Washington University Face the Facts initiative.

The reasons behind the tax hike is based on budget shortfalls. Lawmakers who are struggling to compensate a tight budget are upping taxes on cigarettes. State and local governments brought in $17.1 billion in tobacco tax revenue in 2009, according to the Tax Policy Center. The benefit is that cigarette price increases can deter cigarette smoking. Studies indicate that a 10 percent hike in cigarette prices can reduce smoking by about four percent.

Tobacco choices have also changed because of the federal tax, according to data reported in 2009. From 2008 to 2011, pipe tobacco usage increased by 573 percent and large cigars by 126.3 percent. Neither are heavily taxed as much as cigarettes and both are still small shares of the overall tobacco market.

The United States spends a hefty price on smoking health related problems—$96 billion a year. The info graphic below cites that the adverse health effects of cigarette smoking kills about 443,000 Americans each year. That’s about the equivalent of the population of Atlanta. Tobacco use is also responsible for three out of 10 cancer deaths.