Published February 13, 2007

Ward supports rise in tax on cigarettes

BY PAT WARD
SENATE DISTRICT 30

As a member of the Senate Ways and Means Committee, last week I voted in favor of a bill that will raise Iowa's cigarette tax by $1 per pack. As a Republican, I am very reluctant to increase taxes, however, I believe this cigarette tax increase will save lives and keep many young people from developing a life-threatening habit.

Under the legislation, Iowa's tax on cigarettes would increase from the current 36 cents to $1.36 per pack. The bill also requires all cigarette and tobacco tax proceeds to be placed in a newly created health care trust fund that will be used for health care programs a provision that was critical for me to support the bill. Iowa's cigarette tax, which is the nation's eighth-lowest, hasn't been raised since 1991.

I truly believe that increasing the price of cigarettes will save lives because higher-priced cigarettes will prompt more Iowans to stop smoking and discourage young Iowans from picking up the habit. Statistics show that raising the price of cigarettes is the single most effective tool for discouraging smoking, especially among teens, and for reducing the number of people who die from smoking-related illnesses.

The 2000 U.S. Surgeon General's Report, Reducing Tobacco Use, found that increasing the price of tobacco products would decrease the prevalence of tobacco use, particularly among kids and young adults, and that tobacco tax increases would lead to "substantial long-term improvements in health."

From its review of existing research, the report concluded that raising tobacco taxes is one of the most effective tobacco prevention and control strategies.

In addition, total state income from cigarette taxes is currently far less than the most conservative estimates of what states spend related to smoking the U.S. Centers for Disease Control & Prevention estimates the state's health care costs average $7.18 per pack.

Furthermore, the Centers for Disease Control estimates that productivity losses nationwide caused by smoking amount to more than $82 billion per year, and that doesn't even take into account workers' being less productive on the job as a result of health problems.

You all know the adage, "Price sells cars." I believe "Price sells cigarettes."

Numerous economic studies have documented that every 10 percent increase in the price of cigarettes will reduce overall consumption by about 3 percent to 5 percent and reduce the number of kids who smoke by about 7 percent.

If this tax keeps kids from starting to smoke and developing a highly addictive habit, I'm convinced many lives in Iowa will be saved.



State Sen. Pat Ward, R-West Des Moines, represents District 30 in the Iowa Senate. The district includes West Des Moines, Clive and Windsor Heights. Ward can be reached at 281-3371 or pat.ward@legis.state.ia.us.