Tobacco Pricing

The NYC Coalition for a Smoke-Free City supports increasing tobacco taxes to reduce the number of new smokers in New York City and help existing smokers to quit.  Tobacco tax increases is one of the primary reasons why the smoking rate in New York City dropped over 35 percent since 2002.  While we commend New York City for increasing the price of cigarettes to over $11 in July 2011, further tax increases would help to further reduce smoking rates and smoking-related healthcare costs.

Health Benefits

Studies have repeatedly shown that increasing tobacco taxes is one of the most effective ways to reduce tobacco use, especially among youth.  For every 10 percent increase in the price of cigarettes, youth smoking decreases approximately 7 percent and overall cigarette consumption decreases by 4 percent.[1]  According to the 2000 US Surgeon General Report, raising the price of tobacco products produces “substantial long-term improvements in health.”

Economic Benefits

Tobacco use costs New York State over $8 billion a year in smoking-related healthcare costs,[2] including at least $3 billion in annual Medicaid costs.[3]  New York State residents’ tax burden from smoking-related healthcare costs is $900 per household.[4] Increasing tobacco taxes saves New Yorkers money by reducing tobacco-related health care costs.

1. Chaloupka, F.  “Macro-Social Influences: The Effects of Prices and Tobacco Control Policies on the Demand for Tobacco Products.”  Nicotine and Tobacco Research, 1999. 
2. Centers for Disease Control and Prevention. “Annual Smoking-Attributable Mortality, Years of Potential Life Lost, and Productivity Losses—United States 2000-2004.” MMWR 57(45), November 14, 2008.
3. Armour, BS et al. “State-level Medicaid expenditures attributable to smoking.” Preventing Chronic Disease, 6 (3) 2009.
4. Campaign for Tobacco Free Kids.  “The Toll of Tobacco in New York.”  http://www.tobaccofreekids.org/facts_issues/toll_us/new_york  [accessed 2011 Feb 14].