By Mark Huffman
ConsumerAffairs.com
June 21, 2010
Smoking has become a very expensive habit of late, and in New York it could get a lot more costly.
New York Governor David Paterson is pushing for a $1.60 a pack hike in the cigarette tax, which would push the cost of a pack of cigarettes to $10. Lawmakers could vote on the proposal as early as today.
The primary motivation for the increase is financial. New York, like many other states, badly needs additional revenue. But anti-smoking leaders, who applauded the proposal, see health benefits as well.
"Increasing the tobacco tax is one of the most effective ways to reduce smoking and other tobacco use, especially among children," said Kevin O'Flaherty, Northeast Regional Director, Campaign for Tobacco-Free Kids. "The planned tobacco tax increase is a tremendous victory for public health that will prevent kids from smoking, motivate smokers to quit, and save lives and health care dollars."
The Governor says the tax hike could generate as much as $440 million in revenue this year, which help address a $9 billion budget deficit.
Part of the proposal would limit the number of cigarettes that can be sold by New York's Indian tribes, which don't collect or pay state sales taxes. By at least one estimate, half the cigarettes New Yorkers smoke are purchased from Native Americans.
With New York's budget crunch, O'Flaherty is concerned the state will spend all the money from the new tax immediate budget needs, cutting back on current anti-smoking programs.
"It would be unconscionable for New York to cut back on these already under-funded programs at the very same time that smokers will be motivated to quit and seek help in doing so," O'Flaherty said. "New York must do everything it can to help smokers quit successfully and prevent kids from starting to smoke."
O'Flaherty said New York already cut funding for its tobacco prevention and cessation programs by more than 30 percent last year. Any further cuts, he said, would devastate a highly successful program that has reduced youth and adult smoking rates to well below the national average.
