According to Dr. Terry Pechacek of the U.S. Centers for Disease Control and Prevention’s Office on Smoking and Health, smoking costs the U.S. $193 billion in medical expenses and lost productivity each year: in addition to killing 440,000 Americans. Consequently, the federal government will implement a massive hike on tobacco products April 1st, in order to fund a public health insurance program for low-income children.

According to Danny McGoldrick, who works as research vice president for the Campaign for Tobacco-Free Kids advocacy group, the increase of the tax to $1.01 per pack, up from the current 39 cents, is sure to encourage more people to quit. He says that the equation is simple: as prices rise, fewer people will buy cigarettes. According to McGoldrick, the tax will encourage around 1 million current smokers to quit and prevent 2 million children from starting, which could potentially save $44.5 billion in healthcare expenses and prevent almost a million deaths.

The National Association of Tobacco Outlets are outraged by the decision, which could not only reduce sales dramatically but has the potential to subsequently jeopardize 117,000 jobs — a change which in the current economic crisis with record job losses looks bleak. The Bush administration had previously vetoed the bill twice, which imposes higher taxes on not only cigarettes but all tobacco-related products; President Barack Obama signed the expansion of the State Children’s Health Insurance Program on February 4.

Though smoking rates have declined in recent years, the new legislation will accelerate the drop.

 Print This   Email This   Share/Save