Connecticut Cigarette Tax Increase Delivers Victory for Kids and Taxpayers; $1 Increase...

Connecticut's leaders have taken decisive action to protect the state's kids
and taxpayers from the devastating toll of tobacco use by increasing the state
cigarette tax by $1 to $3.00 per pack, making it the second highest state
cigarette tax in the nation (Rhode Island's tax is $3.46 per pack).
Connecticut is also increasing its tax rates on most other tobacco products,
but they still remain shamefully low compared to the state's exemplary new tax
rate on cigarettes. Increased tobacco taxes are a win-win-win solution for
Connecticut and every other state - a health win that will reduce tobacco use
and save lives, a financial win that will raise revenue to help alleviate
budget shortfalls, and a political win that polls show is popular with the
voters.

The evidence is clear that increasing the cigarette tax is one of the most
effective ways to reduce smoking, especially among kids. Studies show that
every 10 percent increase in the price of cigarettes reduces youth smoking by
more than six percent and overall cigarette consumption by about 4 percent.
Connecticut can expect the $1 cigarette tax increase to prevent 24,000
Connecticut kids from becoming addicted adult smokers; spur 10,000 current
adult Connecticut smokers to quit for good; save more than 10,500 Connecticut
residents from future smoking-caused deaths; lock in more than $520 million
future health care savings; and raise about $60 million a year in new state
revenue.

By failing to raise taxes on other tobacco products to match its new cigarette
tax, Connecticut's legislators have chosen not to take advantage of a golden
opportunity to raise a lot more money; money that could be used to increase
funding for the state's tobacco prevention program and to help provide
cessation assistance through the state's Medicaid program. Connecticut
continues to be one of the last states to not provide any cessation coverage
for its Medicaid recipients, and is still near the bottom of all the states
with regard to tobacco prevention funding.

Governor Jodi Rell proposed the increase in the cigarette tax this session.
The state Legislature approved the tobacco tax increase this week and Governor
Rell is allowing the budget to become law without her signature. By supporting
a higher cigarette tax, Connecticut's leaders have taken action that will
improve the health of Connecticut residents for generations to come and
continue the state's leadership in the fight against tobacco use, the No. 1
cause of preventable death in the United States. The tobacco tax increases
take effect on October 1.

Tobacco use is the leading preventable cause of death and disease in
Connecticut, claiming 4,700 lives each year and costing the state $1.63
billion annually in health care bills, including $430 million in Medicaid
payments alone. Government expenditures related to tobacco amount to a hidden
tax of $680 each year on every Connecticut household. While Connecticut has
made significant progress in reducing youth smoking, 21.1 percent of
Connecticut high school students smoke, and 4,600 more kids become regular
smokers every year.

With Connecticut's tax increase, the average state cigarette tax is now $1.34
per pack. Connecticut is the second state with a cigarette tax of $3 or more,
Rhode Island being the first. Fourteen states and the District of Columbia
will now have cigarette tax rates of $2 per pack or more, and 26 states and DC
have cigarette tax rates of $1 per pack or more. South Carolina (a tobacco
growing state) remains the lowest-tax state with a cigarette tax of only seven
cents per pack. Only three states besides South Carolina have failed to raise
their cigarette tax since before 2000: California (1999), Missouri (1993),
North Dakota (1993) and South Carolina (1977).