Higher cigarette tax could hit poorer smokers hard

While some laud a proposal to increase the state cigarette tax to generate an estimated $150 million in new revenue, others say that drive could put a greater financial burden on low-income smokers who are unable to kick the habit.

``There's more good than harm that comes from this sort of initiative,'' said state Rep. Rachel Kaprielian, D-Watertown, who filed the bill to increase the cigarette tax by $1, which would raise it to $2.51 a pack.

She said the higher taxes are needed to help curb smoking and raise money for health programs. She noted the bill doesn't specifically earmark funds for anti-smoking measures, but the state would continue its drive to help smokers break the habit.

Kaprielian said the extra pressure on smokers to pay the tax is a concern, but if smokers don't quit, they face costly tobacco-related health problems in the future.

``It is sort of a vicious cycle,'' said Kaprielian, who later added a higher tax ``does reduce smoking.''

State Rep. Kay Khan, D-Newton, said she is concerned that a higher tax on cigarettes would most affect low-income smokers.

``I would agree it does seem to tap into those who can least afford it,'' said Khan.

Khan said House Speaker Sal DiMasi has indicated the money generated by a higher cigarette tax would help fund the state's new health insurance program, but there is no guarantee the money will be spent there.

``It's up to the leadership to make sure it does go to the state health care law,'' said Khan.

According to the state Department of Public Health, smoking declined steadily among adults from 1986 to 2005, dropping from nearly 28 percent to about 18 percent during that time.

But the state health department also found that smokers from lower-income families smoked at higher rates than the rest of the state's population, according to a report released last year. About one-quarter of residents whose families earned $25,000 to $34,999 smoked, and nearly 23 percent of smokers came from families who earned between $35,000 to $49,999.

Smoking rates drop below 15 percent for households earning $50,000 or more, according to the report.

Nationally, some have questioned the effectiveness of cigarette tax hikes on stemming smoking: Last year, ABC News reported a study conducted by researchers at the University of California, Davis, School of Medicine that found new taxes are putting an undue burden on low-income smokers.

The university study followed smoking habits over 20 years and reported that following the 1998 settlement with the tobacco industry, tax hikes encouraged wealthier smokers to quit the habit.

But the same could not be said for less-wealthy smokers: Researchers said while tax hikes have helped in the past to deter smoking, future increases do not appear to have that effect and the higher costs put a greater financial pinch on poorer smokers, according to the California study.

Russet Breslau, executive director of the Framingham-based Tobacco Free Massachusetts, said the increase will help get people to stop smoking and, in the long term, drive down health care costs tied to treating smoking-related illnesses.

``It's significant revenue, it's also significant public health improvement,'' said Breslau.

Khan said the state should place a sales tax on alcohol - booze is exempted now - and raise the state's excise tax on alcohol from its current level of 11 cents per gallon. The excise tax on alcohol was last set in 1975, according to Kahn's office.

She estimated a 5 percent sales tax on alcohol alone would raise an extra $80 million, and a higher excise tax could earn millions more.

Alcohol is consumed by a wide range of people and is purchased by large corporations and other organizations, she said. She has filed bills to do this for the past few years with little success, but hopes the drive for casinos in Massachusetts - and the expected alcohol sales with gaming - will make a sales tax more attractive, said Kahn.

Philip Morris USA spokesman Bill Phelps said his company is opposed to the cigarette tax hike, which he said would force smokers to buy cheaper packs across state lines or over the Internet.

``We don't think it makes a lot of sense to fund government programs on a revenue source that continues to decline,'' said Phelps.

John Hilliard can be reached at 508-626-4449 or jhilliar@cnc.com.

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