Stiff cigarette tax is needed
By William B. Stephan

While we are enthusiastic about many features of the new health plan proposed by Governor Mitch Daniels, the American Lung Association of Indiana is especially supportive of his efforts to aggressively address tobacco related health issues and access to heath care for the uninsured.

Commenting on a proposed increase in the state's tobacco tax, the Governor encouraged legislators to set the bar high: "The more you raise the cost of cigarettes, the more Hoosiers can be provided health coverage. I hope you think that big."

Recently, four health-related organizations - the American Lung Association of Indiana, the American Cancer Society, the American Heart Association and Tobacco Free Kids - conducted an opinion poll among Hoosiers. Sixty-two percent of the respondents favored increasing the cigarette tax by one dollar per pack. Eighty-two percent said it's important that revenues from a cigarette tax increase be used to fund programs to keep kids from starting to smoke and help smokers to quit.

All around us, our Midwestern peers appear to understand that a stiff cigarette tax can be an effective weapon against smoking. While our current rate in Indiana is a mere 55.5 cents per pack, Michigan's rate is $2 per pack, Ohio's is at $1.25 and the Illinois rate is 98 cents. It's really costly to smoke in Chicago, where the state and local cigarette tax combined is a whopping $3.66 per pack.

Indiana's adult smoking rate is 27.3%, the second highest of the 50 states. Sadly, 21.9% of Hoosier youth are smokers. It is a tremendous drag on our economy and quality of life, with Indiana healthcare expenditures due to tobacco use reaching more than $2 billion annually.

According to the American Lung Association of Indiana, a 25-cent increase in cigarette taxes, an amount proposed by some, will prevent 22,400 youths from becoming smokers and will result in 13,200 fewer adult smokers. But a $1 increase in cigarette taxes will prevent 102,900 youngsters from taking up the habit and will result in 48,100 fewer adult smokers.

Those numbers tell us that a $1 increase will produce far better results than a mere 25-cent increase. Legislators are right to be cautious in considering tax increases in any form. But public support for stronger tobacco measures continues to mount. The cigarette tax poll found that voters are much more likely to back a candidate who supports increasing the cigarette tax by a dollar a pack. Support, the polls said, outweighs opposition by nearly a three to one margin.

This is a tax increase that is long overdue and pays for itself many times over.

(William B. Stephan is chairman of the board of directors of the American Lung Association of Indiana and senior vice president of Clarian Health Partners)