Campaign for a Healthy and Responsible Tennessee - CHART - Cites Study Confirming Cigarette Tax Increases Raise Money, Save Lives.

Health/Medical Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 20, 2003

The Campaign for a Healthy and Responsible Tennessee (CHART), which supports an increase in the cigarette tax to the national average of 69.4 cents, points to a recent study that confirms increased cigarette taxes remain a viable and valuable way for states to counter budget deficits while improving public health.

The recent study by Research Triangle Institute International finds that states with significant cigarette excise taxes consistently gain more revenue in spite of declines in smoking, cross border sales and tax evasion as a result of the higher prices. According to the study, states that do not increase cigarette taxes actually lose revenue over time due to inflation and declining smoking rates.

"Having an independent research firm from the heart of tobacco-growing country confirms the value of a cigarette tax increase. Perhaps Tennessee legislators will see they have good reasons to act. Right now, they're cutting jobs, cutting law enforcement, and cutting help to the disabled and veterans, while a way to prevent these cuts is right in front of us - a way that would deter youth smoking too," said Mary Nell Bryan, campaign coordinator for the Campaign for a Healthy and Responsible Tennessee.

Tennessee Fiscal Review estimated that a 40 cent increase in the cigarette tax would generate $203 million in state and local revenue.

Tennessee has had only one cigarette tax increase since 1969. The 2001 increase was 7 cents, bringing Tennessee's tax to 20 cents per pack. The national average is 69.4 cents per pack, and it is rising as states like West Virginia approve cigarette tax increases. The legislatures of Tennessee neighbors Arkansas and Georgia have also approved cigarette tax increases this year.

"Instead of reducing the number of TBI agents and closing veterans' offices, Tennessee could increase the cigarette tax to at least a level near the national average. Not only would we avoid massive budget cuts, but we'd be helping to reduce smoking," said Bryan. "Many smokers, particularly teens, are sensitive to price and an increase in the cigarette tax would give them the incentive to quit or to not start smoking in the first place."

Tobacco companies argue that cross-border purchases, Internet smuggling, and tax evasion negate the tax increases, but the research shows these factors have a minimal impact on the amount of revenue generated from increased cigarette taxes.

Founded in 1999, CHART is a cooperative effort of the American Cancer Society, American Heart Association, American Lung Association, and more than 40 other Tennessee health and community agencies.

CHART's mission is to improve the quality of life for all Tennesseans by preventing and reducing disease, disability and death caused by tobacco use.