Make no mistake about it, even with the recent spate of smoking
bans taking effect across the country, the latest increases
in federal and state tobacco taxes, and the ban
on flavored cigarettes, the government has a vested interest in keeping
smokers hooked on smoking.
The following are a few common misconceptions about the government’s
actions and attitudes towards smoking Americans:
Myth #1: The revenue from tobacco taxes is being spent on anti-smoking
or other health-related programs.
Fact: For several years the majority of the revenue
from tobacco taxes went to anti-smoking initiatives and state Medicaid
funds. But as the economy continues to flounder and federal and state
budgets get squeezed, tobacco
tax revenues are being funneled into programs and projects unrelated
to tobacco usage, such as children’s health insurance, education, and
infrastructure projects.
Moreover, in 1998, 46 states settled lawsuits
against the four major tobacco companies to recover tobacco-related health
care costs, joining four states — Mississippi, Texas, Florida and Minnesota
— that had reached earlier settlements.
Under these settlements the tobacco companies are required to make annual
payments to the states totaling approximately $246 billion over the first
25 years. Much of this money, including future
receipts, has already been spent in an attempt to cover current state
budget deficits.
Myth #2: Smokers cost the government more in health care expenses.
Fact: As a justification for increasing the tobacco
tax, the government has been harping on the notion that smokers draw on
the health care system more than non-smokers, and that the states must
carry this “extra” financial burden. But according to a recent CDC
study, the final months of a smoker’s life are not more expensive
considering that smokers die some 10 years earlier than nonsmokers, and
those premature deaths provide a savings to Medicare, Social Security,
private pensions and the like.
Myth #3: The tobacco taxation is turning away smokers.
Fact: According to another recent study
by the CDC, the percentage of U.S. smokers has remained virtually unchanged
from 2004 through 2008. What the tobacco tax has done is increased the
number of bootleg
cigarette sales, as people try to take advantage of tax differences
between the states.
Myth #4: The tobacco taxation is slowing down the production
of tobacco products.
Fact: The big tobacco companies have a history of quickly
adapting to and taking advantage of the changing laws and taxation rules.
For a recent example, consider how the companies responded
to the tax increase on roll-your-own tobacco.
Myth #5: The government is focused on effective anti-smoking
techniques and initiatives.
Fact: According to the CDC, from 2000 to 2009, states
have received approximately $203.5 billion in tobacco-related revenue.
However, less than 3 percent of the funds have been earmarked for tobacco-prevention
and smoking-cessation programs in the states. CDC researchers claim
that if states were to use just 15 percent of the money they receive from
tobacco, they could adequately finance tobacco-control measures at CDC-recommended
levels. Currently, no state funds its program to that level.
