United States: Raise tobacco taxes to save 418,000 lives

The United States could significantly increase taxes on tobacco products and implement a federal tax on e-cigarettes. For Tobacco-Free Kids, this measure is essential in order to reduce recreational tobacco and nicotine consumption..

The proposal before the House of Congress would raise federal tobacco taxes for the first time in more than a decade. The legislation would double the current federal tax, and bring taxes on other tobacco products into line with those on manufactured cigarettes.

Effective for health, convenient for public finances

The entire scientific literature shows that tax increases, when they are significant, regular, and applied over the long term, are the most effective and cost-effective lever for reducing tobacco consumption, starting with that of young people. Public health experts estimate that doubling the federal cigarette tax in the United States will reduce the number of adult smokers by 1.1 million people in the first year, prevent more than 500,000 adolescents from becoming smokers, and save more than 418,000 human lives. Finally, while smoking represents a significant cost for public authorities, such an increase could bring nearly $100 billion to the State over a decade.

Electronic cigarettes in the crosshairs

The legislation, if implemented, would also establish the first federal tax on e-cigarettes. According to Tobacco Free-Kids, the new tax is a much-needed response to the high prevalence among young people. E-cigarettes have become an extremely popular product among young people, with consumption levels reaching epidemic levels. In 2020, 3.6 million middle and high school students were e-cigarette users, including one in five high school students. The federal tax is part of a broader effort to reduce consumption of these inherently addictive nicotine products among young people.

Tobacco taxes: a socially just measure

The proposal has drawn criticism, however, particularly from Republicans. Opponents of the measure say that a tax increase would go against President Biden's campaign promises to not raise taxes on Americans earning less than $400,000 a year. In fact, counterintuitively, tax increases on tobacco products actually increase the purchasing power of the population, particularly the poorest. By being more effective on low- and middle-income people, tax increases actually turn out to be a socially just measure, in that they reduce social inequalities in health for children in these social categories.

FT

National Committee Against Smoking |