A tax increase of $1 per pack of cigarettes, would raise an estimated $26 million in state revenue, but we hope this figure isn’t the only thing on legislators’ minds as they consider the tax proposal.
It’s not enough to make a big dent in the state’s $438 million revenue shortfall, but for many this campaign is not just about the money. In seeking a hike in the cigarette tax, advocates hope to make Maine a healthier state. A large increase in the cigarette tax could prevent 8,500 young people from becoming smokers, help 4,600 smokers quit, and mean longer and healthier lives for thousands of Mainers.
The statistics come the Campaign for Tobacco-Free Kids, and are based on the closely studied relationships between tax increases and smoking rates. The rate of smoking, in turn, can predict the incidence of associated health problems.
The link between cigarettes and lung disease, heart disease and many other ailments has long been clear, and according to the Centers for Disease Control, more than 440,000 Americans die each year as a result of smoking. The growth in tobacco taxes and regulations reflect a growing sense that smoking imposes a heavy toll on individuals and society.
Maine, like all states, must spend a significant amount of state funds on care for those suffering from the consequences of smoking. The state, through the Fund for a Healthy Maine, also invests in smoking cessation programs. Additional revenue from a higher cigarette tax should be spent on further outreach efforts to help people quit smoking, and on medical care. It would be an honest attempt to use the additional tax revenue on behalf of those will pay it.
There’s no getting around the fact that the cigarette tax is regressive, falling more heavily on those whose incomes are low. Maine’s current tax of $2 a pack is slightly above the national average but, except for New Hampshire ($1.78), it is lower than those of surrounding states. Raising it by a dollar would make Maine’s tax slightly higher than most nearby states, but lower than those in Connecticut and Rhode Island.
Is it a good idea for the Legislature to impose a tax hike in the hopes of coercing smokers to quit? For some it will be a hardship. But what we like about this approach is that it aligns smokers’ thinking about cigarettes with economic reality. Smoking is too expensive.
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