RAISING THE TOBACCO EXCISE TAX BY $1.00
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Economic overview:
- A $1.00 per pack increase in the state's tobacco excise tax would provide a stable revenue stream of more than $154 million annually for health reform and public health programs.
- Smoking-caused costs in Massachusetts per taxed pack sold: $19.49
- Average retail price per pack: $5.41 (state share from excise and sales taxes: $1.77).
- Annual health care expenditures in Massachusetts directly caused by tobacco use: $3.54 billion.
- Total state Medicaid program smoking costs each year: $1.0 billion.
- 5-Year healthcare savings from fewer smoking-affected pregnancies & births: $7.3 million
- 5-year healthcare savings from fewer smoking-caused heart attacks & strokes: $10.7 million
- Long-term healthcare savings in state from adult & youth smoking declines: $1,053.8 million
- Every state that has increased its cigarette tax has seen an increase in revenue, even while reducing smoking levels.
Public health impact:
- Increasing the price of tobacco products decreases tobacco use, particularly among young people; raising tobacco taxes is one of the most effective tobacco prevention and control strategies.
- Percent decrease in youth smoking: 12.6%
- Increase in total number of kids alive today who will not become smokers: 46,100
- Number of current adult smokers in the state who will quit: 26,000
- Number of smoking-affected births avoided over next five years: 4,300
- Number of current adult smokers saved from smoking-caused death: 6,800
- Number of kids alive today saved from later premature smoking-caused death: 14,700
- Pack sales decline in state by 18%