Coalition Proposes Earmarked Tobacco Tax
A Cure for Unhealthy Budget and Unhealthy Addiction

SACRAMENTO -- Citing broad public support, help for the State’s budget crisis and substantial savings in health care costs, a coalition of health organizations proposed a new plan today to raise the cigarette tax $1.50 per pack and dedicate 20 cents of the increase to tobacco control programs.

At a morning news conference in the State Capitol, advocates for the earmarked tobacco tax increase unveiled recent polling information showing broad, bipartisan support for their proposal. The poll, commissioned by the American Cancer Society and the Next Generation California Tobacco Control Alliance, showed more than 67 percent approval among voters for a tobacco tax increase with a specific amount dedicated for tobacco control programs.

"We see strong support for an earmarked tobacco tax increase, regardless of political party, ethnicity, gender, income or geography," said Traci Verardo of the Next Generation California Tobacco Control Alliance. "Even smokers and Republicans support an earmarked tobacco tax increase."

With the state facing a fiscal crisis for the foreseeable future, proponents of the plan emphasized the benefits of an earmarked tobacco tax this year and beyond. "Less smoking simply means less spending by the state," said Deborah Leary, Chair of the American Cancer Society. "Smoking costs California $8.6 billion annually in direct medical costs, of which $3.7 billion are taxpayer-supported. This earmarked tax can help 640,000 smokers quit, and many more never start."

Michael Ong, MD PhD, a University California at San Francisco public health researcher, presented a report detailing how the $1.50 per pack tax increase would raise more than $1.1 billion in new revenues to help close the state budget deficit, and $64 million in additional sales tax for cash strapped counties. The tax would create significant public health benefits as well, including an estimated 6,900 fewer smoking-related deaths annually.

State Senator Deborah Ortiz (D-Sacramento), chair of the Senate’s Health Committee, praised the earmarked tobacco tax increase plan for addressing several crucial needs at once. "This plan should be supported by all my legislative colleagues," said Senator Ortiz. "We can raise revenues for education, health care, and law enforcement, improve public health and even reduce the cost of health care by implementing a tax that will provide benefits to everyone in California."

Assemblyman Dario Frommer (D-Glendale), chair of the Assembly’s Health Committee, said the coalition’s proposal is a good way to tackle two issues -- health problems from smoking and raising revenue for the state -- with one tax. "Even in the midst of the worst fiscal crisis in California history, we need to remember that investing tax dollars to fight smoking is good fiscal policy because treating tobacco-related illnesses drains millions of dollars out of state coffers each year."

The additional funding for tobacco control, prevention and cessation programs was highlighted as essential to combat the potential resurgence of tobacco use, particularly among teens. "Big Tobacco now spends 13 times more trying to sell their lethal product than the state spends trying to prevent tobacco addiction," said Michael Gordon, a board member of American Heart Association, Western States Affiliate. "This plan won’t even the playing field, but it’s a very good start."

The newly formed Coalition for a Healthy Future has geared up a vigorous grassroots lobbying campaign, including a large ad in today’s Sacramento Bee. The effort will include outreach to every legislative district in the state as the Coalition works to win approval from the Legislature and Governor. "We expect a hard fought campaign pitting trusted organizations concerned about the health of Californians against the money and influence of Big Tobacco," said Paul Knepprath of the American Lung Association of California.

The coalition supporting the plan includes the American Cancer Society, American Heart Association and American Lung Association, Americans for Nonsmokers’ Rights, Campaign for Tobacco Free Kids and Next Generation California Tobacco Control Alliance.

An online Media kit, including sources, background materials and a copy of the ad that appeared in today’s Bee is available at www.healthyfuture.net.

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Additional Contacts:

Ann Goure’, American Cancer Society, (916) 448-0500 ext 302, or cell: (916) 202-4425
Jamie Morgan, American Heart Association, Western States Affiliate, (916) 201-8115
Terry Mock, American Heart Association, Western States Affiliate, (415) 224-8418
Andy Weisser, American Lung Association, (818) 703-6444
Paul Knepprath, American Lung Association, (916) 442-4446 ext 13, or cell: (916) 505-3099
Traci Verardo, Next Generation California Tobacco Control Alliance (916) 554-0390 ext 14,
or cell: (916) 606-2573

Take Action:

• Action Alert: Call Your Elected Officials To Support The Tobacco Tax Earmark
  Call-In Day April 28, 2003