Excise Taxes

National

Strong majority of voters nationwide favor increase in federal cigarette tax
Results of a new national poll indicate that two-thirds of American adults support a 75-cent per pack increase in the federal cigarette tax to provide healthcare for uninsured children. This support appears to be broad, with majorities of both men and women, residents from rural and urban areas, and people from every major political party favoring the increase.  The current cigarette tax is 39 cents per pack. If such legislation is approved, it would be the first time in ten years that Congress has voted for an increase in the tax. The Campaign for Tobacco-Free Kids estimates that the increase would stop 2.3 million children from ever initiating smoking, avert 1.1 million tobacco-related deaths, encourage 1.4 million adults to quit, and would translate into $54 billion in long-term healthcare savings. To read more, click here.

Tennessee House vote sends 42-cent cigarette tax hike to governor
The Tennessee legislature has approved a 42-cent cigarette tax increase, which will increase the state’s cigarette tax to 62 cents per pack. The Senate narrowly approved the measure by a 17-16 vote, while the House of Representatives voted 60-34 in favor of the bill. The revenue will be utilized to revamp the state’s educational system, including an increase in teacher salaries, compensation for the higher cost to educate children from poor families and funding for rapidly-growing school districts. Click here to read more, or click here to view the Campaign for Tobacco-Free Kids’ response written by Executive Direction William V. Corr.

Oregon Senate forwards cigarette tax hike
A controversial cigarette tax increase of 84.5 cents per pack, passed by the Oregon Senate, may be sent to voters in November of this year. The increase would reach voters in the form of a constitutional amendment which, if approved, would help fund healthcare coverage for many uninsured children in the state. The debate surrounding the decision is not necessarily about whether raising the tax to help insure children is a good idea, but rather if amending the constitution is the best strategy. Legislators were forced to resort to this method after the House of Representatives twice defeated a ballot referral for the proposed increase. The current version, however, has a much better chance of succeeding in the House because constitutional amendments require only a simple majority. To read more, click here.

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