Tobacco taxation: ‘If revenue goes down … I really don’t care’

The joint House Finance and Health Care Committee is considering a bill now (live on TVW) to increase the tax on tobacco products.

The bill would raise about $90 million this biennium and nearly $200 million next biennium, according to estimates.

Rep. Eileen Cody, a sponsor of the bill, addressed the idea that the bill could actually lose the state money because people would stop smoking if the tax gets too high.

“If revenue goes down because of this, I really don’t care,” she said, adding her aim in introducing the bill was to stop people from smoking.

The tax would go into effect on July 1, 2010 and, starting in 2011, send $18 million per year to the tobacco prevention and cessation account.

Dr. Jeff Harris, who works at the University of Washington, testified to the committee that heart attach deaths have been reduced by half in the same time period that smoking has been reduced by half. “We have done that, it’s wonderful and we need to keep it going.”

“Smoking workers miss more work because they get ill more often, and even the simple act of a smoking break takes time from work,” he said. Harris works with small businesses to help them increase the health of their employees.

One woman who testified (will update with name when I get it) said her cigar store would go out of business if this tax passed. She said it would add $70 to a box of cigars. “I can’t believe we’re back here again,” she said. “I made business decisions, expanded my business based on this 70 cents per stick,” she said.

“I’m not in the medical field, I’m not a doctor. I’m a cigar smoker and a representative,” said Don Hanes of Monarch Marketing, adding that fine cigars aren’t addictive and constitute a hobby. “To be honest with you, the OTP should be lowered,” he said.

Meghan Sullivan with Thurston county Tobacco Prevention & Education held up dissolvable tobacco products that look like breath mints or strips. She said students use the new tobacco products in class. She said increasing tobacco tax would help reduce the amount of tobacco abuse.

Testimony per person has been limited to 90 seconds because there are so many people who want to testify.

Jeff Packer of the Tinder Box in Tacoma said he’s seen higher and lower taxes on tobacco. He said higher taxes on cigars don’t make people stop smoking them — they make people stop buying them in Washington.

Tags: tobacco tax