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Washington State 's $1 Tobacco Tax Increase A Major Public Health Victory

April 23, 2010

Washington, D.C. – April 23, 2010 – Washington state will take a major step forward to save lives and protect children today when Governor Christine Gregoire signs legislation into law increasing the state’s cigarette tax by $1 to $3.025 per pack. The tax increase was passed by the state legislature April 12 and the Governor is expected to sign the bill this afternoon. Once the increase takes effect May 1, Washington will have the second highest cigarette tax in the nation and will join Rhode Island and Connecticut as the only states with cigarette taxes above $3.

The legislation also includes significant tax increases on other tobacco products, including cigars. Those increases will go into effect July 1.

“This important public health victory will save more than 17,000 lives in Washington state,” said John R. Seffrin, PhD, chief executive officer of the American Cancer Society Cancer Action Network (ACS CAN). “Raising tobacco taxes protects public health by reducing smoking and preventing youth from starting the habit. It also helps boost the economy by generating revenue and long-term health savings. We encourage more states to follow Washington’s lead.”

ACS CAN, the advocacy affiliate of the American Cancer Society, championed the tobacco tax increase in Washington to prompt current smokers to quit and prevent youth from starting. An estimated 19.2 percent of Washington adults currently smoke. Research has consistently shown that every 10 percent increase in the price of cigarettes reduces youth smoking by 7 percent and overall cigarette consumption by about 4 percent.

Every year, Washington incurs more than $1.96 billion in direct medical costs and $1.7 billion in productivity costs from smoking. The increased tax will generate approximately $80.7 million in new revenue in the first year, which will be directed entirely to Washington’s general fund. ACS CAN had advocated that a portion of the new revenue be allocated to restoring funding for Washington’s successful tobacco prevention and cessation program, which was cut by $11.4 million last year and will face an additional $2.6 million in cuts this year.

“During these cash-strapped times, we encourage lawmakers to consider a tobacco tax increase as a reliable means to invest in critical state health programs and shrink budget shortfalls,” said Molly A. Daniels, interim president of ACS CAN. “At the same time, tobacco taxes are one of the most effective ways to sharply reduce smoking, thereby reducing necessary health spending and lowering the cancer burden in a state. It’s a win for states every way you look at it.”

ACS CAN and the Society are currently working on campaigns to increase tobacco taxes in many states across the country. Since 2002, 46 states, the District of Columbia and several U.S. territories have raised their cigarette tax in 98 separate instances, including 14 states and the District of Columbia in 2009 alone. Washington is the third state to increase its taxes in 2010, preceded by New Mexico and Utah in March. All three new increases will be in effect by July 1, bringing the new average state cigarette tax to $1.40 per pack. Cigarette taxes currently range from a low of seven cents in South Carolina to a high of $3.46 in Rhode Island.

According to a recent report released by ACS CAN in partnership with other leading public health organizations, if all 50 states increased their cigarette taxes by $1 per pack, they would collectively raise more than $9 billion in new annual revenue to help close severe budget shortfalls, while also reducing smoking and saving lives.

Data also shows that states can achieve even greater financial and health benefits if they also increase tax rates on other tobacco products, such as smokeless tobacco and cigars, and dedicate some of their tobacco tax revenues to fund programs to prevent kids from smoking and help smokers quit.

The use of tobacco products remains the nation’s number one cause of preventable death, killing more than 400,000 Americans and costing $96 billion in direct health care costs each year.

ACS CAN, the nonprofit, nonpartisan advocacy affiliate of the American Cancer Society, supports evidence-based policy and legislative solutions designed to eliminate cancer as a major health problem. ACS CAN works to encourage elected officials and candidates to make cancer a top national priority. ACS CAN gives ordinary people extraordinary power to fight cancer with the training and tools they need to make their voices heard. For more information, visit www.fightcancer.org.

FOR MORE INFORMATION, CONTACT:
Nicole Bender
(202) 661-5773
[email protected]

Steven Weiss
(202) 661-5711
[email protected]

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