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Long-Term Health Benefits of Cigarette Tax Increases

Learn about health and financial benefits from federal and state cigarette tax rises from 2007-2009, with projected savings and revenue figures. This data highlights the positive impact of taxing tobacco products on public health and finances.

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Long-Term Health Benefits of Cigarette Tax Increases

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  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

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