Tobacco tax increases in President Barack Obama’s budget proposal include nearly doubling the federal levy on cigarettes, which could prompt 2.6 million adult smokers to quit, according to one estimate.
The proposed fiscal 2014 budget calls for hiking the tax on a pack of cigarettes to USD 1.95 from USD 1.01, an increase of 94 cents. The Washington Post cited a 2012 study by the Congressional Budget Office that concluded a 50-cent increase in the cigarette tax would prompt 1.4 million smokers to quit by 2021. Using that data, the Campaign for Tobacco-Free Kids estimated the 94-cent increase proposed by Obama would save 18,000 lives and result in 2.6 million fewer adult smokers by 2021.
Revenue from the tax increases will be channelled to the states to improve the quality of pre-school care. (pi)