June 21, 2007

Contact:
- Ann Goure’, 916-202-4425/916-448-0500
- Paul Knepprath (916) 505-3099
- Marcella Rojas (916) 533-2109

The Missing Piece of the Puzzle: A Tobacco Tax Is Key to Health Care Reform

Health advocates urge Governor and Legislature to include a tobacco tax To help finance Health Care Reform

(SACRAMENTO, CA - June 21, 2007) Today at the State Capitol, health advocates launched a campaign to urge Governor Schwarzenegger and the Legislature to make tobacco taxes part of any health care reform proposal, citing increased youth smoking rates and voter opinion polling that supports such an effort.

“A tobacco tax is key to the goal of prevention in health care reform,” said the Reverend Carol Carter, pastor at North Sacramento United Methodist Church and a member of PICO California. “Raising the tobacco tax will help reverse the dangerous rise in youth smoking and save lives. A tobacco tax will also help generate funds to provide health coverage to the more than six million people in our state without it.”

Increasing the tobacco tax would generate new revenues needed to adequately fund the tobacco control program and expand affordable health insurance for low-income Californians. By itself, the tobacco tax is an insufficient revenue source for health care expansion because revenues decline over time due to declining rates of smoking. However, a tobacco tax, if included in a larger package of employer and provider fees, could be an essential element to the overall financing strategy.

“California voters overwhelmingly support increasing tobacco taxes to help pay for health care reform, and they choose a tobacco tax over all other choices for financing health care,” said Paul Knepprath, Vice President of Government Relations for the American Lung Association of California. “It is time for the governor and Legislature to listen to the people and support a tobacco tax to reduce teen smoking and fund health care.”

According to a poll conducted in May by Pubic Opinion Strategies and Fairbank Maslin, Maullin & Associates, liberal, moderate and conservative voters all support increasing tobacco taxes. The poll shows that 67 percent of all voters surveyed, and 58 percent of Republican voters, express support for increasing the tobacco tax by $1.50. When voters are asked to compare possible revenue sources for health care reform (employer fee, provider fee, tobacco tax, etc.), they overwhelmingly prefer a tobacco tax as a financing source.

“Tobacco takes a tremendous toll on all Californians and it is fair to use tobacco taxes to mitigate that impact,” said Jim Knox, Legislative Vice President, American Cancer Society.

Smoking-related diseases currently cost California nearly $16 billion every year. Direct health care costs of smoking account for 54 percent of the total cost of smoking in California or $8.6 billion. Tobacco costs an estimated $4 billion annually in hospital care of current and former smokers.

“Smoking is the number one preventable cause of death. We know historically, raising cigarette taxes not only reduces cigarettes consumed by ongoing smokers, it also prevents children from beginning to smoke,” said Dr. Diane Sobcowicz, American Heart Association Sacramento Division Board Member.

An increase in the tobacco tax is a win-win for California. It will save lives, prevent youth from starting to smoke, encourage smokers to quit, and lower health care costs from tobacco-related diseases.

For 100 years, the American Lung Association has been the lead organization working to prevent lung disease and promote lung health. Lung disease death rates continue to increase while other leading causes of death have declined. The American Lung Association funds vital research on the causes of and treatments for lung disease. With the generous support of the public, the American Lung Association is “Improving life, one breath at a time.” For more information about the American Lung Association or to support the work it does, call 1.800.LUNG.USA (1.800.586.4872) or visit www.californialung.org or www.lungusa.org.call 1-800-LUNG-USA (1-800-586-4872) or visit www.californialung.org.