TAX IN TOBACCO
Introduction
The use of tobacco is the leading cause of deaths and diseases which can be prevented in many nations and has been claiming lives of many citizens. Tobacco is the most abused drug among many people. This been observed in many countries. The trends of its abuse have shifted to different ages; now it doesn’t consider even the gender. Some times back the drug was commonly used by men but today even the ladies are using the drug. It is worthy to note that even pregnant mothers are found smoking not knowing the dangers they are posing to their health as well as that of the unborn. Tobacco smoking can lead to fatal diseases like cancer. It will be not advisable for governments to watch their citizens perish from illnesses they could control without experiencing any trouble from people.
The easiest way of solving this problem is by ensuring that the rate of smoking among people decreases. This can only by increasing the prices of the product which can be made possible by increasing the taxes for tobacco. To avoid imbalance caused by taxes in regard to the differences in the amount of money earned by different people the government should initiate programs aimed at helping the poor from the money obtained from the tobacco tax.
Tobacco: The Number 1 Health Hazard in States and Nations
Several decades ago Surgeon General Luther Terry issued a shocking report on smoking and health. He warned the nation that tobacco smoking was the cause of much poor health and early death amongst millions of Americans. The public concern was fixed on the on the much grim facts that smokers died at rates of 70% higher than non-smokers; they had a nine to ten fold risk of developing complications like lung cancer; smoking is linked to chronic bronchitis, and coronary heart disease.
Since the year 1964 successive surgeon generals in the United States have issued newer repots that act as a confirmation and expansion to the initial findings. In 1969 and 1980 the reports focused more on the detrimental effects of smoking on pregnancy which included higher rates of still births, premature birth, low weight during birth and some infant death syndrome. Youth smoking was addressed by a report made in 1979. In 1988 report made a conclusion that smoking of cigarettes is addictive. Recently a report in 2006 highlighted some dangers of secondhand smoke.
Despite the numerous researches and greater changes in the attitudes among the public about smoking, tobacco has remained to be the leading cause of the preventable death and diseases world wide. Many people die each year due to smoking as well as to the exposure to the second hand smoking. It is shocking to note that smoking kills more individuals than alcohol, car crashes, AIDS, illegal drugs, suicides and murder combined.
The smoking rate for adults and pregnant women in United States is the worst. More than one in four adults here which is 26.9%, youth 27.6% and 27% women smoke. The high smoking rates are even falling far short of the goals of the healthy people in year 2010, the objectives of the national public health, which are seeking to decrease the use of tobacco by up to 12% amongst the adults, 16% for the smoking adolescents and to 1% among pregnant mother.
A committee formed in 2008 to study the problems of health care and health. The committee engaged many citizens so that they could develop recommendations for change. A major recommendation that came from the committee was to reduce the use of tobacco in US. This was to be achieved by raising of the taxes on cigarettes and products of tobacco that are smokeless. Bills have been introduced in the senate and the house so as to increase the tax imposed on cigarettes by up to 65% per packet.
The Tobacco Tax from the Perspective of Health
The cessation of smoking has immediate and long term benefits for both men and women at all ages. The risk of lung cancer and others, cardiovascular diseases, chronic lung diseases and heart attack all significantly decrease when individuals stop smoking. People who stop smoking live longer than the continuing smokers. For women who have stopped smoking before they become pregnant reduce the risk of having babies with low weights of birth and other possible complications.
One of the most workable tools for reduction of smoking has been the induction of taxes on tobacco. Many economic studies and other peer reviewed journals have shown that when the prices of cigarettes increase there can lead to reductions in smoking among current smokers and also will reduce the number of individuals who wish to start smoking. The young people and the pregnant women are considered to be essentially most sensitive to the increases in the prices of tobacco. This is because many initiatives to smoke begin prior to high school graduation and that the habits of smoking become more established during early childhood.
Therefore pricing of the young people out of the market will be a very effective strategy to help curb the addiction of tobacco.The research suggests that a 10% increase in the real price of the cigarettes can be expected to reduce the short term cigarette consumption by up to 2-5% for the adults. In among the young people a 10% increase is expected to decrease to consumption by 6% or even more.
The table below shows the health impact of raising cigarette tax by 65%
| Current adult smokers who would quit | 14,000 |
| Youth who would not become tobacco-addicted adults | 30,00 |
| Premature tobacco-related deaths avoided | 14,00 |
| Smoking affected pregnancies avoided over 5 years | 2,700 |
The tobacco tax from a fiscal perspective
Deaths and diseases related to smoking carry a high cost; this is not only emotionally for the families coping with such tragedy, but also for the health system and the economy at large. In West Virginia care costs which are directly caused by smoking totaled to $600millio, out of which the states aid on the medical field pays for $229million. Smoking has led to low productivity losses in West Virginia are estimated to at $994 million. The state and the federal tax burden of smoking caused government expenditure amounts to $590dollrs in a year.
In addition to the potentials of saving in the healthcare and other costs, the revenue gains of a tobacco tax increase are significant. If there proposed 65% increase is implemented it will make the state earn extra $110 million in revenues. Then when the smokeless tobacco is doubled from 7 to 14% it will result into additional $10 million state in a year.
Reference
Hirschfield, A. (2010) Tobacco: Health and medical issues today:USA
WHO (1997) Tobacco or health: A global status report: World health organization
West Virginia center on budget and policy (2010). Tobacco tax benefits outweigh concerns: Virginia
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