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

2. Tobacco Taxes
#43
National Avg: 1.69

3. 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:
$ million