New Report: Tobacco Tax Increase Would Protect Kids, Help Michigan’s Budget Deficit & Fund Public Health
Michigan ranks 44th in the Country in Funding Tobacco Prevention Programs
Lansing, Mich. – As Michigan deals with its budget deficit, a new report shows that increasing tobacco taxes would protect kids and bring in more than $200 million in revenue in the first year alone. That revenue would be significant for lawmakers as they put together the state budget while also reducing tobacco use in the state.
The scientific evidence is clear that tobacco tax increases are one of the most effective strategies to reduce smoking and other tobacco use, especially among youth. Tobacco tax increases also generate millions in revenue for states while reducing health care costs, including state Medicaid costs.
The report details the extensive health and economic benefits to each state from increasing its cigarette tax by $1.50 per pack. If Michigan did so, it would:
Prevent 7,500 kids from smoking;
Prompt 31,100 adults to quit smoking within the first year;
Prevent 9,800 premature, smoking-caused deaths;
Save $500.4 million in long-term health care costs, including $11.3 million in Medicaid costs in the first five years; and
Raise over $217.4 million in new state revenue in the first year alone.
The report also calls on Michigan to increase funding for programs to prevent kids from using tobacco and help people quit using tobacco, finding that most states are underfunding these programs that are proven to save lives and reduce tobacco-related health care costs. According to the report, Michigan currently ranks 44th in the nation in funding such programs, spending $4.6 million, which is 4.2% of the $110.6 million recommended by the CDC.
“A tobacco tax increase is a win-win solution for Michigan – a health win that will reduce tobacco use and save lives and a revenue win that can help fund tobacco prevention and other lifesaving public health programs,” said Yolonda C. Richardson, President and CEO of the Campaign for Tobacco-Free Kids. “The United States has made enormous progress in reducing tobacco use, but these gains are at risk unless states step up their efforts and Congress restores funding for the CDC’s tobacco control program.”
Tobacco use remains the leading cause of preventable death in the U.S., killing nearly 500,000 Americans every year and costing over $241 billion in annual health care expenses, more than 60% of which is paid by taxpayers through government programs like Medicare and Medicaid.
In Michigan, tobacco use claims 16,200 lives each year and costs the state $5.33 billion in annual health care expenses. While smoking rates have been greatly reduced, 13.4% of Michigan adults still smoke. Among the state’s high school students, 2.1% smoke while 15.4% use e-cigarettes.
More than 100 organizations in Michigan are part of the Keep MI Kids Tobacco Free Alliance and are continually advocating for stronger tobacco prevention policies in the state. Legislation to create a tobacco retail license in Michigan has already passed the Senate, while similar legislation was recently introduced in the House. Michigan is one of only nine states that does not require tobacco retailers to be licensed. State lawmakers have a clear opportunity to make this long-overdue policy a priority and move it across the finish line. Michigan’s kids are counting on the Legislature and the Governor to act swiftly and pass this common-sense legislation without delay.
The report was released by the Campaign for Tobacco-Free Kids, American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights and Truth Initiative.
View the report, including state-by-state information, and a ranking of the states.
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