Tobacco & Taxes

(Rant Warning!)

If you want to raise revenue, tax a addictive product. I get it, as a “business model,” it’s a winner. Folks will fill your tax coffers, because they have a hard time not buying the thing you’re taxing. When you tax tobacco, you can pretty much count on the coughers to fill your coffers!

A coffer is a strong box in which valuables might be stored. This file was donated to Wikimedia Commons as part of a project by the Metropolitan Museum of Art.

In some ways, if you tax an addictive product, it seems like you aren’t playing fair. While folks who use tobacco could choose not to pay tobacco taxes by not buying tobacco. But everyone knows that’s easier said than done. But there are other ethical reasons why I often cringe when the topic of tobacco tax comes up.

Conflict of Interest

I struggle to believe that the government can maintain integrity in matters of public health when the number one danger to public health* also generates significant income for the government. State, federal, and local municipalities collect money from the sales of tobacco. Relying on that revenue means municipalities will be negatively impacted if tobacco sales decrease.

Are our government entities addicted to tobacco tax revenue?

But individuals within those municipalities are adversely impacted by every pack sold. Once upon a time – here in Massachusetts – at least a portion of the tobacco tax was used specifically to provide evidence-based tobacco cessation services to any Massachusetts resident who was trying to quit. The Massachusetts Tobacco Control Program was arguably one of the most effective in the nation – perhaps on the planet.

During those years, legislators and public health advocates from four continents traveled to Massachusetts to learn about the comprehensive and highly effective program. Boards of Health were trained and equipped to support smoke-free policies in communities across the Commonwealth. Youth advocates were involved to be certain that retail age restrictions were being followed. A social marketing component created and sponsored television, radio, and print marketing to promote tobacco cessation.

It Was Awesome Until…

The MTCP enjoyed notoriety for a few years. While attending national and international tobacco conferences, as Massachusetts advocates, activists, and cessation professionals were (along with colleagues from California) usually regarded as leaders in the field. And, yes – tobacco taxation was part of the comprehensive plan. Data showed a strong inverse correlation between tobacco tax hikes and youth smoking rates.

Massachusetts was delivering evidence-based tobacco cessation services in 90 locations across the commonwealth. The programs featured free nicotine patches and/or gum for people engaged in individual coaching or group support programs. The number of adult and youth smokers dropped significantly for a few years. So did tobacco sales.

And then…

It Was All Gone

The acting Governor – on the very same day – cut the funding of the highly acclaimed MTCP by 95% and signed legislation to double the tax on cigarettes! The timing of those two pieces of legislation is hard to ignore. Let’s shutter a huge majority of those places where people are quitting and double the taxes that smokers pay.

Some of the youth activists I had the privilege of leading saw the injustice right away. “Hey! That’s, taxation without representation!” Some of them went on to remind me, “That’s what the Boston Tea Party was about, right?” And they were right, but I had to redirect their idea of throwing boxes of tobacco into Boston Harbor for a number of reasons! One obvious reason was that we now had just 5% of the budget for cessation services, marketing, youth education programs, and collaborations with local boards of health. The other reason is there are plenty of chemicals in cigarettes that you can’t put into Boston Harbor!

“Boston Tea Party;” by W.W. Cooper. 
Engraving in The History of North America, 1789. Library of Congress

The funding was, for all practical purposes, gone! The youth – in their admirable enthusiastic way – persisted and we did plan a Boston Tea Party, but that’s a story for another day.

Tobacco Tax Increase in 2024?

Yes, that’s what the state legislature is talking about. Massachusetts already has the 6th highest tobacco tax in the country ($3.51 per pack + 6.25% sales tax.) That whopping fee gets added to the federal tax of $1.01 per pack for a soot-sucking surcharge of over $5.00 per pack!

The figure they’re discussing is an additional $1.00 per pack in state tax. Before the tax hike Massachusetts smokers are already paying an average of $12.58 per pack. To read more about tobacco taxation in other states, visit Tobacco Free Kids

Is Massachusetts ready for another tobacco tax hike?

Blaming the Legislators?

Big Tobacco has never told the truth – even under oath. Check out this photo of the CEOs of several US Tobacco companies all preparing to perjure themselves. They all swore, under oath, that tobacco was not addictive. In 2020, representatives of the vaping industry all lined up to deny that vaping was dangerous, despite ample scientific evidence to the contrary.

Mandatory Credit: Photo by John Duricka/AP/Shutterstock (5996063a)
CAMPBELL FILE–Heads of the nation’s largest cigarette companies are sworn in before a House Energy subcommittee hearing on Capitol Hill . From left are: Robert Sprinkle III, executive vice president for Research American Tobacco Co.; Donald Johnston, American Tobacco; Thomas Sandefur Jr., Brown and Williamson Tobacco Corp.; Edward Horrigan Jr., Liggett Group Inc.; Andrews Tisch, Lorillard Tobacco Co.; Joseph Taddeo, U.S. Tobacco Co.; James Johnston, RJ Reynolds; and William Campbell, Phillip Morris. In what could mark a major turning point in tobacco litigation, cigarette makers Philip Morris Cos. and RJR Nabisco are negotiating a settlement that reportedly could cost as much as $300 billion, give the companies a blanket amnesty and retire the Marlboro Man, the Associated Press learned Wednesday, April 16, 1997
TOBACCO SETTLEMENT, WASHINGTON, USA

Furthermore the legislators accept campaign contributions from the tobacco industry and tobacco lobbyists. Yes, they’re to blame as well. The media has glorified and promoted tobacco for decades. The Flintstones and the Beverly Hillbillies used to sell Winston cigarettes during their shows! (Click the links to see them!)

When it comes to tobacco, there is plenty of blame to go around. The responsibility to quit falls to the smoker, many of whom feel duped, lied to, and misled. I am honored to serve and support these brave folks. ( Click to read about Blame and Responsibility.) Please keep up the good work. Please get the support you need and deserve.

Thanks for being awesome!

* Number One Danger to Public Health?

Yes! I never need to exaggerate when it comes to tobacco or the tobacco industry. The truth is damnable enough. It is tragically true that tobacco kills more Americans every year than…

  • Homicide
  • Suicide
  • Motor Vehicle Accidents
  • Fires
  • Alcohol, and
  • AIDS/HIV

COMBINED!

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