Legislation to Rollback Cigarette Tax

Media Coverage

May 2011

Stanley Block: Don’t cut R.I. cigarette tax 01:00 AM EDT on Sunday, May 8, 2011 By Stanley Block

Some members of the Rhode Island House have introduced a new bill to cut the state’s cigarette tax, now at $3.46 a pack, by $1, citing the threat that the tax poses to small businesses. When deciding on whether to cut the cigarette tax, our legislators should consider Rhode Island’s public health and the potential long-term costs of smoking. The state has the highest cigarette tax rate in the nation.

Many studies suggest that raising cigarette taxes lowers smoking rates, particularly among youth.

Lowering the tax might reverse this trend. However, we should move beyond looking at the cigarette tax, and do more to address the prevalence of smoking among our youth and affected communities.

We should foster commitment from our community’s parents, leaders and teachers to educate young Rhode Islanders about the ills of smoking. Almost 90 percent of all regular smokers began smoking at or before 18. In Rhode Island 1,200 kids become new daily smokers each year; this breaks down to 100 kids each month. It is up to us to make sure our youth understand how truly addictive smoking is, and help those adults already addicted find the resources and support they need to quit.

In my three decades as medical director of the Providence Community Health Centers (PCHC), I have seen thousands of inner-city Rhode Islanders who suffer from severe respiratory ailments, such as asthma and emphysema, which resulted from, or were exacerbated by, years of tobacco use and exposure to secondhand smoke. I see first-hand how difficult it is to treat patients with an addiction to nicotine, especially those already prone to respiratory diseases. For treatment to work, the individual must be truly committed to quitting and the necessary resources must be in place to support this commitment.

The PCHC has been fortune to receive federal funding to provide nicotine-replacement therapy (NRT), such as patches and gum, and cessation-support services to uninsured and under-insured Rhode Islanders. In addition to the medication and support services, we are also able to provide comprehensive counseling for adolescents and families who smoke to help them finally achieve their goal of quitting.

Adolescents greatly underestimate the addictive potential of tobacco and nicotine. They never think that they’ll become addicted. Many influences lead them to try smoking, and once they start, they’re hooked. Being around family members, older youth and peers who smoke prompts many youth to try it, before they learn the deadly consequences. The depiction of smoking as a “cool” pastime in Hollywood and advertising campaigns reinforce this temptation. It is up to us to make sure that the truth is heard, so that youth

can make informed decisions and remain as healthy as possible.

Teens can better relate to the short-term harms of smoking — bad breath, premature wrinkles, yellowing of teeth and nails and unpleasant body odor. These impacts are immediate and are things they worry about on a daily basis. Secondly, former or current smokers can share their experiences with youth, to encourage them to stop or not start in first place. They can discuss how painful it is to quit.

PCHC is hard at work educating and counseling our community on the dangers of smoking, and the resources available to help smokers quit. You can help, too. Spread the word about this movement and the Tobacco-Free Providence campaign. Anything we can do to stop our youth from smoking will make Providence a safer, healthier place to live.

Stanley Block, M.D., is an allergist and medical director of the Providence Community Health Centers (PCHC). PCHC received part of the federal stimulus funding awarded to the Providence Mayor’s Substance Abuse Prevention Council and the Rhode Island Department of Health to help uninsured patients become tobacco-free.

http://cranston.patch.com/articles/op-ed-tobacco-tax-is-a-win-win-for-rhode-island

OP ED: Tobacco Tax is a Win-Win for Rhode Island Leave the tobacco tax as-is, says Michael Fine, Interim Director of the Rhode Island Department of Health. May 9, 2011 Tobacco taxes have proven to be a major public policy success all across the US. Taxing tobacco helps reduce cigarette smoking (and other tobacco use) as it raises the revenue states need, so that states can afford to treat the illnesses tobacco use causes. The CDC (Centers for Disease Control and Prevention) regards raising tobacco prices as a best practice in reducing smoking – the leading preventable cause of death and disease nationally – because those higher prices keep people from smoking – and that saves lives and hundreds of millions in healthcare costs each year. Each year, smoking costs the Rhode Island economy more than $1.2 billion, according to a recent study commissioned by the American Lung Association. The average price of a pack of cigarettes is $8.12 while the cost to the state per pack is $31.20 – nearly 400 percent more than smokers pay. Rhode Island has the second highest cigarette tax in the nation. We also have the third lowest youth smoking rate and the fifth lowest adult smoking rate in the US. This is not a coincidence. As cigarette taxes climbed in the early 2000s from $.71 to $3.46, consumption declined markedly. Rhode Islandʼs youth smoking rate decreased 62 percent between 1997 and 2008. According to an economic analysis conducted by the Campaign for Tobacco-Free Kids, every ten percent increase in cigarette prices reduces youth smoking by approximately seven percent and total cigarette consumption by four percent. Rhode Islanders fought hard for cigarette tax increases over time, and as a result, weʼve seen significant reductions in smoking initiation, cigarette consumption, and exposure to secondhand smoke. Whatʼs more, these taxes have become a vital financial resource for our state and, unlike some taxes, enjoy overwhelming public support. But there are still 1,600 Rhode Islanders who die from smoking each year. Nearly all of them began smoking before age 18. Rhode Islandʼs tobacco tax has been a win-win for the Rhode Island and Rhode Islanders. Fewer smokers, fewer kids with a disgusting, expensive, deadly habit – and a state better able to afford its health care costs. Why be second best? Letʼs keep the tobacco tax as it is, and help make Rhode Island the healthiest state in the union. - Michael Fine, M.D., Interim Director, Rhode Island Department of Health

May 10, 2011

http://www.golocalprov.com/politics/Tobacco-Tax-Is-a-Win-Win-for-Rhode-Island/

   Tobacco Tax is a Win-Win for Rhode Island Tuesday, May 10, 2011 By Michael Fine Tobacco taxes have proven to be a major public policy success all across the US. Taxing tobacco helps reduce cigarette smoking (and other tobacco use) as it raises the revenue states need, so that states can afford to treat the illnesses tobacco use causes.  

The CDC (Centers for Disease Control and Prevention) regards raising tobacco prices as a best practice in reducing smoking – the leading preventable cause of death and disease nationally – because those higher prices keep people from smoking – and that saves lives and hundreds of millions in healthcare costs each year.

Each year, smoking costs the Rhode Island economy more than $1.2 billion, according to a recent study commissioned by the American Lung Association. The average price of a pack of cigarettes is $8.12 while the cost to the state per

http://www.golocalprov.com/politics/Tobacco-Tax-Is-a-Win-Win-for-Rhode-Island/

pack is $31.20 – nearly 400 percent more than smokers pay.

Rhode Island has the second highest cigarette tax in the nation. We also have the third lowest youth smoking rate and the fifth lowest adult smoking rate in the US. This is not a coincidence.

As cigarette taxes climbed in the early 2000s from $.71 to $3.46, consumption declined markedly. Rhode Islandʼs youth smoking rate decreased 62 percent between 1997 and 2008. According to an economic analysis conducted by the Campaign for Tobacco-Free Kids, every ten percent increase in cigarette prices reduces youth smoking by approximately seven percent and total cigarette consumption by four percent.

Rhode Islanders fought hard for cigarette tax increases over time, and as a result, weʼve seen significant reductions in smoking initiation, cigarette consumption, and exposure to secondhand smoke. Whatʼs more, these taxes have become a vital financial resource for our state and, unlike some taxes, enjoy overwhelming public support.

But there are still 1,600 Rhode Islanders who die from smoking each year. Nearly all of them began smoking before age 18.

Rhode Islandʼs tobacco tax has been a win-win for the Rhode Island and Rhode Islanders. Fewer smokers, fewer kids with a disgusting, expensive, deadly habit – and a state better able to afford its health care costs.

Why be second best? Letʼs keep the tobacco tax as it is, and help make Rhode Island the healthiest state in the union.

   Bill Would Lower RIʼs Cigarette Tax NBC Channel 10 May 11, 2011 Aired at 5 PM for 2:27 Rhode Island lawmakers are considering a bill that would cut RIʼs cigarette tax by $1. People who back the bill say itʼs costing the state business, but opponents of a rollback say the high tax encourages Rhode Islanders to live healthier lives.

Interview with Dr. Tim McAfee May 17, 2011, afternoon news May 18, 2011, morning news

http://www.woonsocketcall.com/node/2589

 

The Cigarette Tax Debate May 19, 2011 By Russ Olivo

WOONSOCKET — James DeForest doesn't have to wonder how much cigarette business he's losing to neighboring Massachusetts. His customers tell him right to his face. “As it stands now customers verbally discuss how much cheaper tobacco is in Massachusetts,” said the manager of JB Liquors on Social Street.

“They will actually make another stop to avoid purchasing cigarettes in our store.” Five hikes in state taxes on cigarettes since 2001 have taken their toll on JB

Liquors and other vendors near the state's borders with Massachusetts and Connecticut. JB Liquors' cigarette sales have dwindled to a fraction of what they once were, as customers make the quick skip over the border to avoid the state's $3.46 a pack tax on cigarettes, the second highest in the nation after New York.

Cigarettes used to bring in customers who spent additional money on beer, wine and other items they might not have thought about buying until they walked in the store. But DeForest says much

of that business has vanished, too. Now a group of state legislators from the Greater Woonsocket area has

introduced a bill in the General Assembly to roll back the tobacco tax by a buck a pack to help out vendors like JB Liquors.

That would push state tobacco taxes down to a nickel below those of the Bay State, 54 cents below Connecticut and, hopefully, eliminate the border-hopping habits of consumers searching for discount smokes.

The bill was co-sponsored by freshman Rep. Robert D. Phillips (D-Dist. 51, Woonsocket), Rep. Jon D. Brien (D-Dist. 50, Woonsocket) and Rep. Brian C. Newberry (R-Dist. 48, North Smithfield, Burrillville), the new minority leader.

Phillips says the same cross-border economics applies to other products, so he has also introduced a measure to cut taxes on gasoline by a nickel, to 27 cents a gallon.

“Rhode Island is hemmed in by two states that have lower taxes on cigarettes,” Phillips said. “We need to do something to encourage the individual in Pawtucket who needs gas to buy it in Pawtucket, not over the line in Massachusetts. We need to

http://www.woonsocketcall.com/node/2589

encourage a person in Westerly running out for a pack of cigarettes to buy them at a convenience store in Westerly, not at one in Connecticut.”

DeForest and many other border-town vendors wholeheartedly support scaling back cigarette taxes, but not everyone is so happy. Health advocates and anti-smoking groups say it is absolutely the right thing to do – if you want to see more children addicted to nicotine.

Among those sounding the alarm are the Woonsocket Prevention Coalition and its partner agency, the Rhode Island Tobacco Control Network. They've launched a petition drive urging the state lawmakers to let the bill die.

“Our position is always trying to make sure we support the health and well-being of kids and we feel one of the best practices is when you raise taxes because use usually goes down,” says the WPC's Executive Director Lisa Carcifero. “Also it decreases access for kids. Adults can make their own decisions, but we don't want kids to even start because we know by smoking cigarettes they can get hooked quickly because of the nicotine. We know the more expensive the product is the less likely children are to get access to it.”

To buttress their cause, health advocates brought in some star power from the national Centers for Disease Control in Atlanta, Ga., to testify against passage of the bill during a legislative hearing this week – Dr. Tim McAfee, director of the CDC's Office on Smoking and Health.

McAfee told The Call that the latest research on the economics of tobacco suggests that cutting the tax $1 a pack means 6,500 “children” who would have never otherwise smoked would take up the habit in Rhode Island. Also, he said, another 2,500 adults who were on track to quit will change their mind and keep smoking.

Moreover, McAfee said, the entire premise upon which the legislative proposal rests is flawed. While champions of the tax cut say it will actually generate more revenue by stimulating tobacco-related commerce, the evidence points unequivocally in the other direction.

“There are myths or misstatements put out by the tobacco industry,” said McAfee. “The most blatant one that's patently untrue is that by lowering the tax you're going to increase state revenue because more people will buy cigarettes. Absolutely not true. It has never happened.

” But Phillips disagrees, saying the state will actually take in more revenue if taxes on tobacco are cut.

“I believe that view is short-sighted,” he said in a statement. “An individual walking into a convenience store to buy a pack of cigarettes is likely to also buy a bottle of water, perhaps a coffee, a lottery ticket, a gallon of milk, a sandwich or a newspaper, and maybe a few other things. So while the state is potentially losing $1 on a pack of cigarettes, it is making up for it by ensuring that people are patronizing Rhode Island merchants.”

Likening the cut to an investment in the economy, Phillips says, sometimes you have to spend money to make money.

“My prediction is that at the very least it will be revenue neutral, but I honestly believe that it will actually improve sales in Rhode Island for gas and cigarettes and that will increase tax revenue.”

The state took in more than $124.8 million in 2009 in gross revenue from cigarette taxes, according to the RITCN. Though state governments are struggling to crawl out of the recession, New Hampshire and New Jersey are also considering proposals to roll back cigarette taxes.