Gov. Whitmer’s budget prioritizes Michiganders’ health by increasing taxes on all tobacco products
Proposal would improve Michiganders’ health while filling Michigan’s budget deficit
LANSING – The Keep MI Kids Tobacco Free Alliance today applauded Gov. Gretchen Whitmer for her budget proposal prioritizing the health of Michiganders by proposing a tax increase on all tobacco products.
“Michigan is woefully behind in protecting its residents, especially youth, from the dangers of tobacco and addiction,” said Jodi Radke, regional advocacy director at the Campaign for Tobacco-Free Kids and chair of the Keep MI Kids Tobacco Free Alliance. “The Governor’s budget proposal prioritizes public health, protects our youth and puts Michigan in line with other states for how these harmful and addictive products are taxed. We are grateful for the Governor’s leadership on this important health issue and encourage the House and Senate to include this commonsense proposal in their own budget plans.”
The Governor’s Fiscal Year 2027 budget proposal recommends a $1 per pack tax increase on cigarettes, as well as implementing an equivalent tax on “other tobacco products” including e-cigarettes that are not currently taxed. The budget also recommends an increase in tobacco prevention and cessation funding, which Michigan is among the lowest states in prioritizing.
According to polling conducted last year, there is broad bipartisan voter support for increasing tobacco taxes in Michigan. The poll, conducted by the Glengariff Group, revealed that 67% of voters support increasing the state cigarette tax with an equivalent increase to other tobacco products like chewing tobacco, e-cigarettes and nicotine vapes.
“Prioritizing kids’ health and reducing Michigan’s budget deficit is a win-win for Michigan,” said Minou Jones, chair of the Detroit Wayne Oakland Tobacco Free Coalition. “The time is long overdue to strengthen Michigan’s tobacco prevention policies to hopefully keep people from becoming addicted in the first place. These budget recommendations -- in combination with pending legislation requiring tobacco retailers to obtain a license -- would put Michigan on a much healthier path with less addiction, giving our kids a better future.”
The American Lung Association recently gave Michigan an F grade on tobacco-related policies including tobacco taxes and funding. Michigan’s current budget invests just $4.6 million in prevention and cessation efforts, or 4.2% of the Centers for Disease Control’s recommendation, which ranks Michigan 44th in the country. Cigarettes have a $2 per pack tax in Michigan, a rate that has not been increased since 2004. Michigan does not currently tax e-cigarette sales, making it more difficult to combat youth use.
Radke continued: “The tobacco industry uses low prices, easy-to-hide devices, youth-friendly flavors and high levels of nicotine to addict the next generation and secure future profits. By increasing the tax on tobacco products, Michigan lawmakers have an opportunity to reduce tobacco use and improve health, while at the same time reducing health care costs and raising revenue to fill gaps in vital health care programs.”
Research from the American Cancer Society Cancer Action Network, Campaign for Tobacco-Free Kids and Economics for Health shows the benefits of a $1 per pack increase are significant. For example, a $1 per pack increase would:
Prevent 5,000 youth from becoming adults who smoke.
Encourage 20,700 adults who smoke to quit.
Save the state $7.54 million in Medicaid spending over the next 5 years.
Save the state $333.27 million in long-term health care costs.
Prevent 6,400 smoking-caused premature deaths.
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