Missouri voters defeated a proposal to increase taxes on tobacco products on Nov. 7, 2006. The tax, proposed by the Committee for a Healthy Future, would have raised the state tax on cigarettes from 17 cents per pack to 97 cents per pack. Women's Voices was supportive of this tax increase, arguing that it would prevent more children from smoking and would provide much-needed revenue to health care providers who care for Medicaid patients. The text of our position paper on this issue follows.
Our Position
We endorse an increase in the state tax on tobacco products as proposed by the Committee for a Healthy Future. The proposed plan, which will appear on the Missouri ballot in November 2006 as Amendment #3, would raise the cigarette tax to 97 cents a pack and increase the tax on other tobacco products by 20%. By making it more difficult to purchase tobacco products and by generating revenue for prevention programs and health care services, this tax would save lives, reduce suffering caused by tobacco-related diseases, and lower the financial burden that tobacco use imposes on all citizens. Our endorsement is based on the following facts:
If the plan is approved, $61 million of the tax-generated funds will be earmarked for smoking prevention and cessation programs, especially for young people, the population most likely to start smoking.
The remaining $290 million will be dedicated to reducing health care costs associated with tobacco use and providing access to care. Specifically, about 35% will be directed to health care programs and services for Missourians living under 200% of the federal poverty limit; 35% will be used for primary care and specialist physician services for the most needy; 15% will support trauma centers and hospital emergency rooms for services provided to Medicaid beneficiaries and uninsured Missourians; and 13% will provide additional funding for safety net clinics such as public health clinics and community mental health centers.
Although this is a regressive tax whereby low-income individuals who use tobacco products will bear a disproportionate financial burden, we believe they will reap the greatest long-term benefits: better health and reduced suffering from chronic smoking-related diseases and improved access to health care services.
If the plan is approved, the state constitution will be amended to ensure that politicians cannot divert tobacco tax revenue to other purposes.
Missouri’s current 17-cent tax per pack is lower than any of its contiguous states’ and is the second lowest in the nation. The national average is 91 cents per pack.
In Missouri, almost a fourth of high school students smoke, and 16,900 youth under age 18 become new daily smokers each year. In the state, 9,700 adults die from smoking-related diseases each year, and smoking causes $2.3 billion in lost productivity annually. (Campaign for Tobacco-Free Kids, 2005)
Missouri’s annual health care costs directly caused by smoking total $1.96 billion. Each household in the state bears a tax burden of $566 in state and federal taxes from smoking-caused government expenditures. Under the proposed plan, tobacco users would contribute more to paying those costs. (Campaign for Tobacco-Free Kids, 2005)
