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Tobacco Taxes

Increasing tobacco taxes are proven to be an effective way to prevent youth from smoking and help adults quit. We are working across the country to save more lives by passing regular and significant tax increases on all tobacco products.

Tobacco Taxes Resources:

The American Cancer Society Cancer Action Network (ACS CAN) supports a comprehensive approach to tobacco control that includes significantly increasing excise taxes on all tobacco products to generate revenue, protect kids, and save lives. Significant tobacco tax increases are one of the most effective ways to prevent kids from starting to use tobacco and help adults quit.

Increasing tobacco excise taxes is one of the best ways to reduce overall tobacco use. It is important that when considering an excise tax increase on any tobacco product, including e-cigarettes, that the tax should be increased on all tobacco products at an equivalent rate to encourage people to quit rather than switch to a cheaper product, and prevent youth from starting to use any tobacco product.

 

When faced with mounting evidence that tobacco tax increases effectively reduce tobacco use, tobacco manufacturers will try to distract policymakers from the material facts by invoking dire warnings of reduced revenue due to increased illicit activity including widespread smuggling and other organized crime that they claim will result from increased taxes on cigarettes and other tobacco products.

The economic model developed jointly by the Campaign for Tobacco-Free Kids (TFK), the American Cancer Society Cancer Action Network (ACS CAN), and Tobacconomics (a program of the University of Illinois at Chicago) projects the increase in state revenues, public health benefits, and health care cost savings resulting from increases in state cigarette tax rates.  The projections are updated annually.  Calculations are based on economic modeling by Frank Chaloupka, Ph.D., and John Tauras, Ph.D., at the Institute for Health Research and Policy at the University of Illinois at Chicago, Jidong Huang, Ph.D., at Georgia State University, and Michael Pesko, Ph.D., at the University of Missouri.

The American Cancer Society Cancer Action Network (ACS CAN) supports a comprehensive approach to tobacco control that includes significantly increasing excise taxes on all forms of tobacco. Regular, significant excise tax increases of $1.00 or more per pack of cigarettes are one of the most effective ways to prevent kids from starting to use cigarettes and to help adults quit. Tobacco excise taxes can also reduce tobacco-related health disparities among people with limited incomes, pregnant persons and among racial and ethnic populations.

 

Tobacco excise taxes benefit people with limited incomes and reduce tobacco-related health disparities, especially when tobacco excise tax revenues are dedicated to cessation programs that serve people with limited incomes.