The Burden of Cigarette Excise Taxes on Low Income Smokers

Audience: State and local tobacco control program staff, tobacco control researchers and advocates.

Key Points: Consistent with prior research, cigarette excise taxes increase cigarette prices paid by smokers.  From June 3, 2008 to July 1, 2010, state and federal cigarette excise taxes increased by $3.47.  Over this same time period, the price per pack reported by smokers increased from $4.96 to $8.32.  Over this same time period, cigarettes smoked per day declined.  However, smokers with annual incomes less than $30,000 spent 19.5% of their income on cigarettes in 2010 compared to smokers earning more, who spent 3.9% of their income.  In addition, smokers earning less than $30,000 paid 38.5% or $601.3 million of all New York State and City cigarette taxes in that year.  Similarly, smokers with a high school degree or less paid over half (51.5%) of all cigarette taxes in 2010 or $804.2 million.

Educational Experience: Although cigarette excise taxes are an effective tool for reducing smoking among adults, low-income smokers bear a disproportionate share of taxes paid.  To address this inequity, there must be complementary tobacco control interventions that help low-income smokers quit.  Such efforts could be funded out of revenue from increased cigarette excise taxes to alleviate the regressivity of increase cigarette taxes. 

Benefits: The presentation can provide valuable information to audience members to help address disparities in the burden of tobacco on low-income smokers.