Increasing Tobacco Excise Tax Erica Palmer Smith Government Relations Director, Kentucky American Cancer Society Cancer Action Network

Tobacco Taxes #43 National Avg: 1.69

Tobacco Taxes Projected Public Health Benefits for Kentucky from a $1.50 Cigarette Tax Rate Increase Percent decrease in youth (under age 18) smoking: 16.8% Youth under age 18 kept from becoming adult smokers: 34,900 Reduction in young adult (18-24 years old) smokers: 7,300 Current adult smokers who would quit: 44,100 Premature smoking-caused deaths prevented: 22,200 5-Year reduction in the number of smoking-affected pregnancies and births: 8,900 5-Year health care cost savings from fewer smoking-caused lung cancer cases: $7.98 million 5-Year health care cost savings from fewer smoking-affected pregnancies and births: $22.10 million 5-Year health care cost savings from fewer smoking-caused heart attacks & strokes: $17.46 million 5-Year Medicaid program savings for the state: $9.37 million Long-term health care cost savings from adult & youth smoking declines: $1.60 billion Nationally, estimated smoking-caused health costs and lost productivity totals $19.16 per pack. We anticipate a special legislative session later in the year to focus on comprehensive tax reform. Governor Bevin has been clear that this reform cannot be revenue-neutral – taxes will have to go up somewhere. What a better time to discuss the $352 million that could come from a substantial tobacco tax increase. One thing I would like to note- an insignificant increase, an increase of less than $1 – will have NO public health benefit. It will not reduce smoking and it will not reduce cancer related to smoking. It would just be a tax. It’s critical that as we move forward, the messaging stays “$1 or more”. Projected New Annual Revenue from Increasing the Cigarette Tax by $1.50 Per Pack: $352.37 million