State Budget Committee Votes to Give Tax Break to Philip Morris USA

Vote follows Committee’s decision to double cuts to tobacco prevention programs

Madison, Wis.—June 1, 2011—The Joint Finance Committee voted Tuesday, 13-3, to change taxation on smokeless tobacco products from one based on price—where the tax automatically follows inflation—to one based on weight, which would make some smokeless tobacco much less expensive and give a competitive edge to the tobacco giant Philip Morris USA. The vote to give Philip Morris USA a tax break comes almost immediately following the Committee’s decision to double cuts to the state’s popular and effective Tobacco Prevention and Control Program.

In response to the change, Gail Sumi, Wisconsin Government Relations Director for the American Cancer Society, Maureen Busalacchi, Executive Director of Health First Wisconsin – Home of SmokeFree Wisconsin, and representatives from a coalition of health groups issue the following joint statement:

“Yesterday’s vote coupled with the committee’s decision to double cuts to the state’s successful and popular Tobacco Prevention and Control Program is devastating to the health of Wisconsin and sets the state up for a future with more needless addiction and higher health care costs.

“Instead of taking a stand against the number one cause of preventable death in Wisconsin, our leaders have turned their backs on the health of our youth. The tobacco giant Philip Morris USA already targets our kids by the bright packaging of their smokeless tobacco products and their candy-like flavors such as grape, cherry and apple. According to Campaign for Tobacco Free Kids, two of UST/Altria’s smokeless brands, Skoal and Copenhagen, make up for half of all smokeless tobacco use among kids. These are the very brands our leaders voted to reduce taxes on.

“By providing a tax break to Philip Morris USA to make the company’s hazardous products cheaper, the Committee is allowing these products to become even more appealing to youth. Numerous studies have shown tobacco prices have a significant effect on smoking rates, especially among price-sensitive teenagers.

“Smokeless tobacco contains two to three times the amount of nicotine found in a cigarette and its users face upwards of 50 times greater risk of developing gum and cheek cancer as well as significantly higher rates of cancers of the larynx and esophagus.

“Wisconsin already spends $2.8 billion annually on tobacco-related health care costs. Roughly $500 million of that is picked up by taxpayers in the form of Medicaid. At a time when Medicaid costs are dramatically increasing, our leaders should consider reducing these numbers through prevention, instead of making decisions that will only amplify these costs in the long run. Saddling future generations with the weight of increased addiction due to decreased tobacco taxation will harm the state’s physical and fiscal health. 

“We do want to thank JFC members Rep. Robin Vos, Rep. Dan Meyer and Rep. Daniel, LeMahieu who voted against this short-sighted and irresponsible amendment. We urge the full Legislature to reverse this provision and protect Wisconsin’s kids from the cancer-causing dangers of smokeless tobacco.”

The change in taxation of smokeless tobacco products is scheduled to go into effect January 1, 2012.

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The Wall Street Journal: Congress Examining Whether Tobacco Manufacturers Are Avoiding Taxes

WSJ Reports: Congress is looking into accusations that some tobacco manufacturers are exploiting a tax loophole by increasing the weight of their "little" cigars to avoid paying the recently increased excise tax on such products. By changing the weight, these cigars can be classified as "large" cigars, taxed at lower rates. Interestingly, the federal Alcohol and Tobacco Tax and Trade Bureau found in the 14 months following the tax increase, sales of "large" cigars have quadrupled and sales of "little" cigars have plummeted, reports WSJ.

The House Energy and Commerce Committee is not only looking at these accusations to see if tobacco manufacturers are indeed avoiding taxes, but they are also examining whether or not these flavored tobacco products are in violation of the Food and Drug Administration's rules against marketing cigarettes to youth. According to WSJ, this rule could apply to "little" cigars if they meet the definition of a cigarette. The picture above compares "little" cigars to an actual cigarette.

To read The Wall Street Journal's full article click here.

$250 Million Loophole in Child Health Law

Back in February 2009, President Obama signed the State Child Health Insurance Program (SCHIP) Bill into law. This was a program that expanded healthcare coverage for children by increasing the Federal Tobacco Tax by $.62. According to a recent Associated Press article a large loophole left in the law has cost the government nearly $250 Million in the first year. The so-called loophole is around the labeling and taxation of roll your own and pipe tobacco. Roll your own tobacco was included in a large increase while pipe tobacco was not. Companies simply changed the name of their product and avoided the increased tax. 

During the last year there have been record increases in the sale of pipe tobacco while there has been a significant drop-off in the sales of roll your own tobacco. As discussed on our blog what really is the difference between these two products?


In the interest in tax fairness this loophole needs to be closed. 
To read the AP article click here.

Congrats to South Carolina!

Congratulations certainly are in order for the great state of South Carolina! Both houses of the legislature passed by a majority a cigarette tax. Once the bill headed towards the desk of the Gov. Mark Sanford he vetoed it. Despite this hurdle, the legislature voted to override this veto. South Carolina had a cigarette tax of just $.07 prior to the passage of this measure. The measure raised the cigarette tax to $.57. Even with this increase South Carolina still ranks in the bottom 10 when it comes to the rate of cigarette taxes.

This was an incredible hurdle for the South Carolina, a strong tobacco state. This tough economy paired with the desire to improve public health finally pushed lawmakers to the brink of passage. Legislators found that increasing the cigarette tax will save lives and save money in health care costs. Congratulations!

Smoke-Free Laws Map

To view the map larger click here.

TFK: Tobacco Tax a Win-Win-WIN for cash strapped states...

Nice LTE on why the cigarette tax is a good thing

Earlier this week there was a great LTE on why the proposed cigarette tax will have public health impact for the state of New York. 

With New York facing insufficient resources to pay for education and health care, the proposed $1 cigarette tax increase will go to the state Health Care Reform Act Resources Fund to support health care and health-related initiatives, such as tobacco control programs. The increase in the cigarette tax is expected to generate additional revenues of $200 million in 2010-2011 and $205 million in 2011-2012.

Tobacco tax increases are good for public health, good for state revenues, and have broad-based public support. The 2008 state Adult Tobacco Survey found 59 percent of New York adults favored the $1 cigarette tax increase. The tax increase would help 53,800 adults to quit and 48,300 state residents to be saved from premature smoking-caused death. In addition, the estimated five-year health savings from fewer smoking-affected pregnancies and births is $16.4 million; and the estimated five-year health savings from fewer smoking-caused heart attacks and strokes is $23.6 million.

Good work Kelly Barton-White! 

Great Article in the Wisconsin State Journal TODAY!

(Pictured Left: Lois Smith, of Rio, quit smoking with help from Wisconsin's Quit Line, part of a program funded by the state cigarette tax. She's shown here in February 2009. Photo by: John Maniaci - State Journal archives)

"Starting Thursday, smokers with health insurance who call the state Quit Line for help kicking their habit will get less help, the result of a 55 percent cut in state funding to smoking cessation and anti-smoking programs.

In spite of soaring state cigarette taxes, the Quit Line's funding was slashed by two-thirds - from $3.7 million a year to $1.2 million - as part of the broad cuts implemented in the 2009-11 budget signed by Gov. Jim Doyle to help solve the state's massive deficit. Total funding for anti-tobacco programs was cut from $15.3 million a year to $6.9 million.

The cuts follow a 75-cent increase in the cigarette tax on Sept. 1 that brought the state tax to $2.52 per pack, and also follows a $1-per-pack increase in 2008 - moves made to help solve budget deficits."

TO READ THE REST OF THE ARTICLE CLICK HERE

Tobacco Harvest in Wisconsin

 

With September in full swing Wisconsin is harvesting its bounty of healthful plants like tomatoes, corn, squash, and soybeans. This is also the time that Wisconsin harvests its tobacco. While tobacco is not a huge portion of the agricultural base in Wisconsin, it lags behind dairy production significantly. Many farmers grow and harvest tobacco as a portion of their harvest bounty but also include more common mid-western crops like corn. 

Tobacco is a highly profitable crop and yields more dollars per acre than many other crops that thrive in the Wisconsin growing season. Wisconsin is not a producer of tobacco for cigarettes, but rather for spit and cigar wrappers. 

Despite it being a good year for tobacco growth here in Wisconsin, SFW has worked tirelessly to fight back against Big Tobacco with its devastating toll of addiction and health problems. It is unclear how tobacco taxes will affect local farmers here in Wisconsin, but its clear- tobacco farming is a thing of the past- no matter the growing conditions.

It's Quittin' time according to a Public News Service Article

Excellant article from the Public News Service on smoking cessation in Wisconsin. 

"For those in Wisconsin looking for reasons to quit smoking, there are two new ones that are prompting people to stub the habit. The American Lung Association in Wisconsin says a 75-cent increase in the cigarette tax that took effect this month, along with new laws to ban smoking in public places statewide, are driving new traffic to quit lines and Web sites."

To read the full article CLICK HERE

Are you smober yet?

The question are you smober at first seems like there might be a typo. In truth the question means are you clean and sober from drugs and/or alcohol AND tobacco free. Nationally as well as in Wisconsin there is progress being made in the area of addressing co-addictions (alcohol and/or other drugs and nicotine) and mental health issues in current smokers. See Wisconsin's own WiNTiP program for more details: Click here for WiNTiP



Science Daily's Article "Doctors fear asking mentally ill to quit" might bring attention to a vulnerable population who could also be helped by the increase in price of cigarettes this month. "People with mental illnesses such as depression and anxiety are the heaviest smokers in the country, but their doctors are afraid to ask them to quit," the article states. It continues to say, "They assume that if their patients try to quit smoking, their mental disorders will get worse." (To read the full article and to understand the myth some doctor's believe CLICK HERE.)

More media coverage about the tax!

Wausau Daily Herald Article

Sheboygan Press Article

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year's in September Reason #10

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #10: QUITTING SMOKING IS BENEFICIAL AT ALL AGES

Quitting smoking is beneficial at all ages, and the earlier in life one quits, the greater the benefits. People who quit smoking cut their risk of lung cancer by 30% to 50% after 10 years compared to continuing smokers, and cut their risk of oral and esophageal cancer in half within 5 years after quitting.

TODAY IS A GREAT DAY TO QUIT!!

RESOURCE #10—CAMPAIGN FOR TOBACCO FREE KIDS—QUIT FOR A BRIGHTER FUTURE

The “Campaign for Tobacco Free Kids” website provides many helpful resources to help you quit smoking.

The “Campaign for Tobacco-Free Kids” is a leader in the fight to reduce tobacco use and its devastating consequences in the United States and around the world. By changing public attitudes and public policies on tobacco, we strive to prevent kids from smoking, help smokers quit and protect everyone from secondhand smoke.
For more information about quitting, please CLICK HERE!

Great media coverage of the tax!

Original AP Story from Scott Bauer

Eau Claire Leader Telegram

CBS Channel 2 Chicago

Many other newspapers have featured the Associated Press article as well.
Check back tomorrow for additional coverage of the cigarette tax increase. Now is a great time to quit smoking and many resources have been outlined on the blog and our website to help people who are ready to quit, to finally make it to the finish line!

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year's in September Reason # 9

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #9: SMOKING DECREASES LIFE EXPECTANCY

Smoking shaves years off a person’s life. Men who have never smoked live on average 10 years longer than their peers who smoke heavily, according to a report in the Archives of Internal Medicine. Not only do nonsmokers enjoy a longer life, they enjoy a better quality of life too.

RESOURCE #9: AMERICAN CANCER SOCIETY—GET SUPPORT FROM FRIENDS AND FAMILY

The American Cancer Society stresses the importance of getting support from friends and family to help you quit smoking. Quitting smoking is a stressful experience that can be helped by encouragement and support from those around you. The American Cancer Society even includes helpful tips to friends and family dealing with a person trying to quit smoking including: letting the person know that it’s okay to call if he/she needs words of encouragement, spend time with the quitter doing things to take his/her mind off of smoking, and celebrate along the way.

The American Cancer Society helpful tips for friends and family can be accessed by CLICKING HERE.

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year's in September Reason #8

As part of SmokeFree Wisconsin’s countdown to September 1 st ’s increase in
the cigarette and tobacco taxes we are highlighting a reason to use September 1 st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #8: IN ADDITION TO CANCER, SMOKING CAUSES MANY OTHER DISEASES
The list of diseases caused by smoking includes chronic obstructive pulmonary disease
(COPD, including chronic bronchitis and emphysema), coronary heart disease, stroke,
abdominal aortic aneurysm, acute myeloid leukemia, cataract, pneumonia, periodontitis, and bladder, esophageal, laryngeal, lung, oral, throat, cervical, kidney, stomach, and pancreatic cancers. Smoking is also a major factor in a variety of other conditions and disorders, including slowed healing of wounds, infertility, and peptic ulcer disease.

RESOURCE #8—CENTER FOR DISEASE CONTROL AND PREVENTION: USING PROVEN
MEDICINES CAN DOUBLE YOUR CHANCE OF SUCCESS
According to the Center for Disease Control and Prevention (CDC), using proven treatments can double your chance of success: “Using proven cessation treatments, such as FDA approved medications and/or individual, group or phone counseling, can double your chance of success.”
Smokefree.gov has an overview of the medicinal options to help you to quit smoking. There are medicines that can help with feelings of withdrawal: nicotine gum, nicotine inhaler, nicotine lozenge, nicotine nasal spray, nicotine patch, bupropion SR pills, Varenicline pills.
Talk to your doctor about options. But remember: Medicine alone can't do all the work. It can help with cravings and withdrawal, but quitting will still be hard at times.
For more information, go to www.smokefree.gov and www.cdc.gov.

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Years in September Reason #7

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #7: SMOKING CAN CAUSE INFERTILITY

Smoking of cigarettes and other tobacco-containing substances can greatly increase infertility. Men who smoke have been shown to have abnormalities in sperm production, translating into higher rates of infertility. Smoking can also lead to impotence by causing damage to blood vessels. For women, tobacco’s toxic substances may harm the ovaries and cause hormonal changes that can lead to menstrual irregularities or even menstrual cycles where ovulation fails to occur. Women are also at greater risk for cervical cancer, which could involve the removal of the uterus and ovaries, leaving women permanently infertile.

RESOURCE #7—MY TIME TO QUIT—TALK TO YOUR DOCTOR

The “My Time to Quit” website provides helpful tips to talking to your doctor about quitting options. “My Time to Quit” also offers a valuable “Doctor Discussion Checklist” to ease you into a discussion with your doctor about quitting. Additionally, you could find out about a prescription treatment option that may help you quit smoking. And learn more about a behavioral support plan, too.

For more guidance about how to start the discussion with your doctor, CLICK HERE!

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year's in September Reason # 6

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #6: SMOKING IS THE SINGLE MOST PREVENTABLE CAUSE OF ILLNESS AND DEATH AMONG MOTHERS AND INFANTS

Historically, Wisconsin has had one of the highest rates of smoking among pregnant women in the nation (16.5 percent Wisconsin pregnant smokers compared to 12 percent nationally.) Pregnant mothers who use tobacco are putting their unborn child at risk for lower birth weight, preterm birth, slowed or reduced physical growth and a higher risk for Sudden Infant Death Syndrome.


RESOURCE # 6—SMOKEFREE WOMEN: HELPING WOMEN QUIT SMOKING

Smokefree.gov has a specific website link devoted to helping women quit smoking. The Smokefree Women website includes a variety of interactive tools to help you quit smoking. Among the suggested tools are: join Smokefree Women on Facebook for support, take a quiz to learn more about why you smoke, put a stop to “smoky thinking”, discover your reasons for quitting, using the craving journal, and becoming aware of your smoking triggers. There is also a link for pregnant women who need to quit smoking to improve the health of the mother as well as the baby.

To learn more about how women can get help quitting smoking, please go to: http://women.smokefree.gov/tools.aspx

For more information about how to quit smoking if you’re pregnant, visit:
http://women.smokefree.gov/topic-pregnancy.aspx

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year’s Day in September Reason # 5

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #5: SMOKING WEAKENS BONES

Smoking is a serious risk factor for osteoporosis, according to the National Institute of Arthritis and Musculoskeletal and Skin Diseases. It’s been shown to fritter away bone density in postmenopausal women and to hike the risk of hip fractures in both sexes, according to the 2004 Surgeon General’s Report. People who endure hip fractures are 12 to 20 percent more likely to die than those who don’t, the Report notes. Smokers may also experience slower healing of broken bones and wounded tissues than do nonsmokers.

RESOURCE #5—CLEAR HORIZONS—QUITTING SMOKING OVER AGE 50

Quitting smoking can be especially challenging for people who have been smoking for many years. But the smoking addiction can be overcome, no matter what your age.
“Clear Horizons” is a website that is catered to those who are quitting smoking over the age of 50. Even after forty or fifty years of smoking, the body can repair much of the damage from smoking. Now is the time to quit and improve your life in many ways.
For more information, please visit: http://www.myclearhorizons.com/

SmokeFree Wisconsin Encourages Wisconsinites to Celebrate New Year’s Day in September Reason # 4

As part of SmokeFree Wisconsin’s countdown to September 1st’s increase in the cigarette and tobacco taxes we are highlighting a reason to use September 1st as an opportunity to quit smoking and using tobacco and informing Wisconsinites of a resource that is available to assist them in their resolution to quit.

Today’s reason and resource are:

REASON #4:
SMOKING INCREASES RISK OF A HEART ATTACK

People who smoke are up to six times more likely to suffer a heart attack than nonsmokers, and the risk increases with the number of cigarettes smoked. The good news is that quitting smoking can immediately reduce your risk of heart disease and other serious disorders, with the benefit increasing over time. Just 1 year after you stop smoking, your heart disease risk may drop by more than half. Within several years, it will approach the heart disease risk of someone who has never smoked. No matter how long you’ve been smoking, or how much, quitting will lessen your chances of developing heart disease.

RESOURCE #4:
AMERICAN LUNG ASSOCIATION; FREEDOM FROM SMOKING- FREE ONLINE PROGRAM
The American Lung Association’s popular and free online program Freedom From Smoking (FFS) has just been revamped and upgraded. The program consists of seven modules, including assessing your readiness to quit, understanding your learned habit and diving into long-term strategies for maintaining a smoke free life.

The FFS program can be accessed online- CLICK HERE!