Tobacco tax effective
With New York facing insufficient resources to pay for education and health care, the proposed $1 cigarette tax increase will go to the state Health Care Reform Act Resources Fund to support health care and health-related initiatives, such as tobacco control programs. The increase in the cigarette tax is expected to generate additional revenues of $200 million in 2010-2011 and $205 million in 2011-2012.
Tobacco tax increases are good for public health, good for state revenues, and have broad-based public support. The 2008 state Adult Tobacco Survey found 59 percent of New York adults favored the $1 cigarette tax increase. The tax increase would help 53,800 adults to quit and 48,300 state residents to be saved from premature smoking-caused death. In addition, the estimated five-year health savings from fewer smoking-affected pregnancies and births is $16.4 million; and the estimated five-year health savings from fewer smoking-caused heart attacks and strokes is $23.6 million.
