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Last week CASAA's Greg Conley and Smokefree Pennsylvania's Bill Godshall testified against proposed legislation in Maryland (SB 631, SB 562 and HB 1153) that would sharply increase MD's tax rate on Other tobacco Products (from 15% to 70% of wholesale price, and from 15% to 95% of wholesale cost).
On March 7, we testified before the Senate Budget and Taxation Committee, and on March 9 we testified before the House Ways and Means Committee.
Following is my March 7 testimony.
Testimony to the Maryland Senate Budget and Taxation Committee on SB 631
March 7, 2012
By
William T. Godshall, MPH
Executive Director
Smokefree Pennsylvania
1926 Monongahela Avenue
Pittsburgh, PA 15218
412-351-5880
smokefree@compuserve.com
I’m Bill Godshall, founder and executive director of Smokefree Pennsylvania. Since 1990, we’ve successfully advocated policies to reduce indoor tobacco smoke pollution, reduce tobacco marketing to youth, increase cigarette tax rates, hold cigarette companies accountable in civil court, and I convinced US Senator Mike Enzi to amend the Tobacco Control Act to require graphic warnings on all cigarette packs, which is now in federal litigation.
Since a key public health goal is to reduce tobacco attributable disease, disability and death, I strongly urge you to reject SB 631 and other legislation to raise OTP tax rates.
Extensive scientific and empirical evidence, including a report I coauthored in 2006, confirms that smokeless tobacco products are about 99% less hazardous than cigarettes, and that >99% of tobacco morbidity, mortality and healthcare costs are attributable to cigarette smoking, not smokeless tobacco or cigars. Smokers who switch to smokeless tobacco products reduce their risks nearly as much as smokers who quit all tobacco/nicotine use, and several million smokers in US have already quit smoking cigarettes by switching to smokefree alternatives.
While cigars can cause similar diseases as cigarettes if they are smoked like cigarettes, most cigar smokers don’t inhale the smoke, and most don’t smoke daily. Thus, cigars also are far less hazardous than cigarettes.
As US cigarette consumption declined 32% in the past decade, moist snuff consumption increased 54%, with adult smokers accounting for the majority of new snuff users. Recent surveys have found that cigarette smokers are far more likely to begin using smokeless tobacco products than are non tobacco users.
There are 70 million tobacco users in the US, but the 33 million daily cigarette smokers will suffer the overwhelming majority of tobacco diseases and deaths. The only way to reduce tobacco disease and death is to continue reducing daily cigarette smoking and cigarette consumption. In contrast, tobacco disease reductions would be negligible even if everyone stopped using smokeless tobacco products and cigars.
During the past 15 years, youth cigarette smoking has dropped sharply and youth use of smokeless tobacco also has declined. The National Survey on Drug Use and Health found that past month use of cigarettes, cigars, smokeless tobacco and pipe tobacco among youth 12-17 years ALL declined from 2007 to 2010. Please note that youth consume less than 1% of tobacco products.
The purpose for increasing cigarette taxes was to hold smokers accountable for governmental expenditures to treat cigarette diseases and disabilities.
But since MD’s 15% tax on OTP already generates more tax revenue than MD spends treating diseases caused by smokeless tobacco and cigars, any increase in MD’s OTP tax rate would represent an unfair and punitive tax. This bill would tax the least hazardous tobacco products at a higher rate than cigarettes.
PA has no tax on smokeless tobacco or cigars, WV taxes the products at 7% of wholesale price, VA taxes them at a similar rate, and DE taxes them at 15%. Most smokeless tobacco users in MD live within 15 miles of an adjacent state, and will simply travel out of state to buy the products if the MD legislature enacts this legislation.
Since cigars are sold on many Internet websites, including some in PA where no cigar tax exists, many more cigar smokers in MD would simply buy them via the Internet to avoid taxes, resulting in very little increased tax revenue for MD.
Smokers have a human right to be truthfully informed that smokefree tobacco products are far less hazardous alternatives to cigarettes. Unfortunately, some health agencies and organizations have deceived elected officials and the public to inaccurately believe that all tobacco products are just as hazardous as cigarettes.
Once again, I urge you to reject SB 631 because it would discourage smokers from switching to far less hazardous smokefree alternatives.
Thank you,
After the hearing ended, the MD Senate Budget and Taxation Committee decided to increase the OTP tax to just 20% of wholesale price, although the MD budget process continues for the next several weeks.
On March 7, we testified before the Senate Budget and Taxation Committee, and on March 9 we testified before the House Ways and Means Committee.
Following is my March 7 testimony.
Testimony to the Maryland Senate Budget and Taxation Committee on SB 631
March 7, 2012
By
William T. Godshall, MPH
Executive Director
Smokefree Pennsylvania
1926 Monongahela Avenue
Pittsburgh, PA 15218
412-351-5880
smokefree@compuserve.com
I’m Bill Godshall, founder and executive director of Smokefree Pennsylvania. Since 1990, we’ve successfully advocated policies to reduce indoor tobacco smoke pollution, reduce tobacco marketing to youth, increase cigarette tax rates, hold cigarette companies accountable in civil court, and I convinced US Senator Mike Enzi to amend the Tobacco Control Act to require graphic warnings on all cigarette packs, which is now in federal litigation.
Since a key public health goal is to reduce tobacco attributable disease, disability and death, I strongly urge you to reject SB 631 and other legislation to raise OTP tax rates.
Extensive scientific and empirical evidence, including a report I coauthored in 2006, confirms that smokeless tobacco products are about 99% less hazardous than cigarettes, and that >99% of tobacco morbidity, mortality and healthcare costs are attributable to cigarette smoking, not smokeless tobacco or cigars. Smokers who switch to smokeless tobacco products reduce their risks nearly as much as smokers who quit all tobacco/nicotine use, and several million smokers in US have already quit smoking cigarettes by switching to smokefree alternatives.
While cigars can cause similar diseases as cigarettes if they are smoked like cigarettes, most cigar smokers don’t inhale the smoke, and most don’t smoke daily. Thus, cigars also are far less hazardous than cigarettes.
As US cigarette consumption declined 32% in the past decade, moist snuff consumption increased 54%, with adult smokers accounting for the majority of new snuff users. Recent surveys have found that cigarette smokers are far more likely to begin using smokeless tobacco products than are non tobacco users.
There are 70 million tobacco users in the US, but the 33 million daily cigarette smokers will suffer the overwhelming majority of tobacco diseases and deaths. The only way to reduce tobacco disease and death is to continue reducing daily cigarette smoking and cigarette consumption. In contrast, tobacco disease reductions would be negligible even if everyone stopped using smokeless tobacco products and cigars.
During the past 15 years, youth cigarette smoking has dropped sharply and youth use of smokeless tobacco also has declined. The National Survey on Drug Use and Health found that past month use of cigarettes, cigars, smokeless tobacco and pipe tobacco among youth 12-17 years ALL declined from 2007 to 2010. Please note that youth consume less than 1% of tobacco products.
The purpose for increasing cigarette taxes was to hold smokers accountable for governmental expenditures to treat cigarette diseases and disabilities.
But since MD’s 15% tax on OTP already generates more tax revenue than MD spends treating diseases caused by smokeless tobacco and cigars, any increase in MD’s OTP tax rate would represent an unfair and punitive tax. This bill would tax the least hazardous tobacco products at a higher rate than cigarettes.
PA has no tax on smokeless tobacco or cigars, WV taxes the products at 7% of wholesale price, VA taxes them at a similar rate, and DE taxes them at 15%. Most smokeless tobacco users in MD live within 15 miles of an adjacent state, and will simply travel out of state to buy the products if the MD legislature enacts this legislation.
Since cigars are sold on many Internet websites, including some in PA where no cigar tax exists, many more cigar smokers in MD would simply buy them via the Internet to avoid taxes, resulting in very little increased tax revenue for MD.
Smokers have a human right to be truthfully informed that smokefree tobacco products are far less hazardous alternatives to cigarettes. Unfortunately, some health agencies and organizations have deceived elected officials and the public to inaccurately believe that all tobacco products are just as hazardous as cigarettes.
Once again, I urge you to reject SB 631 because it would discourage smokers from switching to far less hazardous smokefree alternatives.
Thank you,
After the hearing ended, the MD Senate Budget and Taxation Committee decided to increase the OTP tax to just 20% of wholesale price, although the MD budget process continues for the next several weeks.
You just keep going and going and going. 
