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Senate Finance Committee Approves Cigarette Tax Increase

July 18, 2007

Statement of Daniel E. Smith, President, American Cancer Society Cancer Action Network (ACS CAN)

WASHINGTON, D.C. -- July 18, 2007 -- "Today’s approval by the Senate Finance Committee of a 61-cent increase in the federal cigarette tax to fund the State Children’s Health Insurance Program (SCHIP), by a vote of 17-4, is a victory for public health that would both discourage youth and adults from smoking and provide much-needed health care for millions of children.

"We commend the committee members for voting in favor of the first increase in the federal tobacco tax since 2002, which currently stands at a mere 39 cents.

"In 1955, the federal cigarette tax was 36 percent of the price of cigarettes, but today it is less than 10 percent of the cost per pack. We must do more to prevent children from beginning to smoke and help current smokers quit.

"We know that raising the price of cigarettes has proven effective in preventing many youth from starting to smoke, prompting adults to quit smoking and leading some adults to reduce the number of cigarettes they smoke. For every 10 percent increase in the price of cigarettes, there is a seven percent drop in youth smoking rates and a four percent decline in overall cigarette consumption. For this reason, ACS CAN’s thousands of grassroots advocates across the country are engaged in campaigns to raise cigarette excise taxes in every state.

"In just five years, a 61-cent federal cigarette tax would yield tremendous returns in lives saved and revenue gained for our nation’s health. It would reduce the costs of smoking-related pregnancy complications by $420 million, save $200 million nationally in treating lung cancer and save states and the federal government nearly $12 billion in tobacco-related Medicaid expenses. The tax would generate approximately $35 billion in new federal revenue in five years, and overall would prevent more than 900,000 Americans from dying prematurely because of smoking.

"The tobacco industry, worried about lower profits and a declining consumer base, predictably opposes an increase in the tobacco tax. Let’s not be fooled by an industry whose products kill more than 440,000 Americans each year. Congress must increase the federal tobacco tax to improve public health and increase the number of children with health insurance."

ACS CAN is the nonprofit, nonpartisan sister advocacy organization of the American Cancer Society, dedicated to eliminating cancer as a major health problem. ACS CAN works to encourage lawmakers, candidates and government officials to support laws and policies that will make cancer a top national priority. ACS CAN gives ordinary people extraordinary power to fight cancer. For more information, visit www.fightcancer.org.

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