Senate Bill 1849 would increase California's tax on cigarettes by $2.13 per pack, raise millions for health programs and dramatically reduce smoking.

The California Department of Health Services estimates that a $2.13/pack tobacco tax will reduce smoking by 23 percent, which would drop California’s smoking rate to lowest in the nation.  A recent analysis by researchers at the University of California at San Francisco demonstrates that the new tax will not only reduce smoking, but will also save the state of California $2.35 billion per year in medical expenditures.  This tax will also raise $1.7 billion annually to fund critical health programs for seniors, children and low income Californians.

According to the UCSF analysis, the health benefits of the tobacco tax would be immediate and in the first year we can expect : 250 heart attack and 150 stroke deaths prevented; 670 low birth-weight babies prevented; 900 new childhood asthma cases prevented; and, 35 SIDS cases prevented.  A few financial benefits include: $40 million in medical expenditure savings from prevented cardiovascular disease; $4 million in medical expenditures savings from prevented neonatal care; and, $1 million in medical expenditure savings from prevented childhood respiratory illnesses. 

Because smoking levels are highest among people with low incomes, the cigarette companies argue that cigarette tax increases are regressive taxes that fall disproportionately on lower-income persons.  In fact, higher smoking rates among lower-income groups means that lower-income families are suffering the most from smoking and will, consequently, benefit the most from any effective new measures to reduce smoking, including increased state cigarette taxes. 

Don’t believe for a moment that the cigarette companies care about low-income families and the poor.  These are the same companies that have been preying on low-income and poor communities for decades.  In fact, the cigarette companies have increased the prices they charge for their cigarettes by more than $1.00 per pack in that past few years.  Apparently, the cigarette companies have no problem with levying new charges on low-income smokers when it is done to increase company profits and oppose it only when the new revenues go to the states, instead.  

Unfortunately, right now Big Tobacco is winning.  A recent vote on SB 1849 fell four votes shy of passage in the State Assembly.  Another vote on SB 1849 will occur soon and we need to generat emails, faxes and calls to all Assemblymembers.