California revisiting tobacco tax hike proposals

Author: Crystal Fontaine

In 2004, lung cancer accounted for more deaths than breast cancer, prostate cancer, and colon cancer combined. Approximately thirty five million Americans now live with chronic lung disease, making it one of the leading causes of death in the United States as it is responsible for one in six deaths. The financial costs of treating lung cancer are incredibly high, costing approximately $9.6 billion per year. One does not have to be a smoker to develop lung cancer as there are many factors that are added into the risk of getting lung cancer. However, smoking does increase one’s odds considerably.

According to a 2005 C-STATS data sheet for the state of California, there are 14.3% of Californian adults (ages 18-65) that are current smokers with 10% being daily smokers, leaving the remaining 4.3% claiming they are only occasional smokers. Unfortunately in 2008, there was an estimated total 18,060 Californians who were diagnosed for lung cancer with an expected number of 13,000 dieing from the disease. Due to these increasing numbers, California Assemblyman Tom Torlakson introduced Assembly bill 89, which increases the states cigarette tax. The legislation is similar to California Senate bill 24 that Torlakson introduced last year. AB 89 would provide “much needed funding for Lung Cancer Research while saving our State billions in tobacco-related health care costs”. The bill provides a good way to gain the money needed for research and to help protect the health of many Californians.

AB89 would impose an additional excise tax on the distribution of cigarettes at a rate of $0.105 for each cigarette sold. Cigarette dealers and wholesalers would be required to file a return with the State Board of Equalization, showing the number of tobacco products in their possession that is under their control. The revenues collected would be deposited in the Tobacco Excise Tax Account, which would be created under the legislation. The revenue would go towards certain education and health related purposes, such as child’s health care, tobacco cessation services, and lung cancer research. The law could raise approximately two billion dollars annually if it should go into effect.

Since 2000, there have been 42 out of the 50 U.S states that have increased their cigarette excise tax. According to Torlakson, this should be a win for California’s schools and public health. If the bill is to pass, approximately one billion of the estimated two billion that it is to generate would go towards California’s vast educational system. The other billion would go towards health care needs. As we face a struggling economy, it is just one way to look at different revenue options to help fund important things, such as lung cancer research and education.