Projected Health Care Savings from State & Federal Cigarette Tax Increases*

1. Projected Health Care Savings from State & Federal Cigarette Tax Increases* • Federal + State Average Cigarette Tax Rate • Beginning of 2007: $1.39 per pack • By July 2009: $2.32 per pack • Health Benefits • 5-Year Heart & Stroke Savings: $787.1 million • 5-Year Smoking-Births Savings: $627.4 million • Overall Long-Term Health Savings**: $69.5 billion • **Long-term savings accrue over lifetimes of persons who stop smoking or never start because of tax increase. It is estimated that the states that increased their cigarette taxes during this period have collected or will collect a total of more than $3.6 billion in new cigarette tax revenue in just the first year after the increase was/is effective. * States included: AK, AR, CT, DC, DE (2007 & 2009), FL, (2007, 2008, 2009), IA, IN, KY, MA, MD, MS, NH, (2007, 2008, 2009), NJ, NY, RI, SD, TN, TX, VT (2008 & 2009), WI (2008 & 2009). Source: Campaign for Tobacco-Free Kids July 2009