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Smokefree Pennsylvania sent the following letter to PA House and Senate leaders (as they negotiate how to pay for the state's budget).
Via Fax June 29, 2016
The Honorable Mike Turzai
Pennsylvania House Speaker
Harrisburg, PA 17120
RE: PA Budget, please support cigarette tax hike, but don’t tax low risk smokefree alternatives
Dear Representative Turzai:
More than 99% of tobacco attributable morbidity, mortality and healthcare costs are caused by cigarette smoking. In sharp contrast, vapor and smokeless tobacco products are 99% less harmful than cigarettes, have helped millions of people quit smoking, and have saved taxpayers money.
PA’s budget can improve public health and fiscal accountability by increasing the cigarette tax rate, but NOT by taxing far less harmful vapor (i.e. e-cigarette) or smokeless tobacco products.
$170 Billion was spent treating cigarette diseases in the US in 2010, with >70% of those costs paid by taxpayers. At 4% annual healthcare cost inflation, US cigarette healthcare costs surpassed $200 Billion in 2015, or $15/pack, of which taxpayers paid about $11/pack.
http://www.ajpmonline.org/article/S0749-3797(14)00616-3/abstract
But combined revenue from federal and PA cigarette taxes, and PA’s tobacco settlement is just $3.35/pack. Thus, even a $1.50 cigarette tax increase would force nonsmoking taxpayers to continue subsidizing PA governmental expenditures for treating smoking diseases. A study found PA Medicaid expenditures for treating cigarette diseases were $2.24 Billion in 2012, when PA received $1.45 Billion in cigarette tax and settlement revenue. The study also found that a whopping 70% of PA’s 2.44 million Medicaid enrollees are cigarette smokers.
E-Cigarettes Poised to Save Medicaid Billions
In sharp contrast, taxing very low risk vapor and smokeless tobacco products at the same rate as deadly cigarettes (as proposed by Gov. Wolf and lobbied for by Big Pharma funded CTFK, ACS, AHA, ALA to protect nicotine gum and patch markets) unfairly punishes people for quitting smoking, discourages smokers from quitting or switching to low risk alternatives, deceives the public to believe vapor and smokeless tobacco products are as harmful as cigarettes, and would eliminate hundreds of vape shops in PA that have helped smokers quit (as many PA vapers would buy untaxed products online from out-of-state).
A $1.25/pack cigarette tax hike would generate a similar amount of revenue as Gov. Wolf’s proposal (to tax low risk vapor and tobacco products the same rate as deadly cigarettes), would provide far greater public health benefits, and would be far more fiscally accountable.
Sincerely,
Bill Godshall
Executive Director
Via Fax June 29, 2016
The Honorable Mike Turzai
Pennsylvania House Speaker
Harrisburg, PA 17120
RE: PA Budget, please support cigarette tax hike, but don’t tax low risk smokefree alternatives
Dear Representative Turzai:
More than 99% of tobacco attributable morbidity, mortality and healthcare costs are caused by cigarette smoking. In sharp contrast, vapor and smokeless tobacco products are 99% less harmful than cigarettes, have helped millions of people quit smoking, and have saved taxpayers money.
PA’s budget can improve public health and fiscal accountability by increasing the cigarette tax rate, but NOT by taxing far less harmful vapor (i.e. e-cigarette) or smokeless tobacco products.
$170 Billion was spent treating cigarette diseases in the US in 2010, with >70% of those costs paid by taxpayers. At 4% annual healthcare cost inflation, US cigarette healthcare costs surpassed $200 Billion in 2015, or $15/pack, of which taxpayers paid about $11/pack.
http://www.ajpmonline.org/article/S0749-3797(14)00616-3/abstract
But combined revenue from federal and PA cigarette taxes, and PA’s tobacco settlement is just $3.35/pack. Thus, even a $1.50 cigarette tax increase would force nonsmoking taxpayers to continue subsidizing PA governmental expenditures for treating smoking diseases. A study found PA Medicaid expenditures for treating cigarette diseases were $2.24 Billion in 2012, when PA received $1.45 Billion in cigarette tax and settlement revenue. The study also found that a whopping 70% of PA’s 2.44 million Medicaid enrollees are cigarette smokers.
E-Cigarettes Poised to Save Medicaid Billions
In sharp contrast, taxing very low risk vapor and smokeless tobacco products at the same rate as deadly cigarettes (as proposed by Gov. Wolf and lobbied for by Big Pharma funded CTFK, ACS, AHA, ALA to protect nicotine gum and patch markets) unfairly punishes people for quitting smoking, discourages smokers from quitting or switching to low risk alternatives, deceives the public to believe vapor and smokeless tobacco products are as harmful as cigarettes, and would eliminate hundreds of vape shops in PA that have helped smokers quit (as many PA vapers would buy untaxed products online from out-of-state).
A $1.25/pack cigarette tax hike would generate a similar amount of revenue as Gov. Wolf’s proposal (to tax low risk vapor and tobacco products the same rate as deadly cigarettes), would provide far greater public health benefits, and would be far more fiscally accountable.
Sincerely,
Bill Godshall
Executive Director
