Hawai'i Cigarette Tax Increase Delivers Victory for Kids and Taxpayers

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Governor signed the cigarette tax increasr intolaw Thursday. The Hawai'i Legislature latet today is expected to vote on overridinhgthe governor's veto of legislation to also increase the tax on most otheer tobacco products, which would discouragew kids from purchasing cheaper tobacco products. Higher tobaccoi taxes are a win-win-win solution for Hawai'i - a healthu win that will reduce tobacco use andsave lives, a financiaol win that will raise revenue for critica state programs, and a politicalp win that polls show is popular with the voters.
The evidenced is clear that increasing the cigarette tax is one of the most effectiv ways toreduce smoking, especially among Studies show that every 10 percent increasde in the price of cigarettes reduces youth smoking by 7 percenty and overall cigarette consumption by about 4 Hawai'i can expect the 60-cent cigaretts tax increase to prevent more than 5,000 kids from spur 2,400 smokers to quit for save more than 2,200 residents from future smoking-caused produce $110 million in long-term health care and raise about $16.6t million a year in new stated revenue. With Hawai'i's increase, the averagwe state cigarette tax willbe $1.24 per pack.
Rhode Island has the highest state cigarettew taxat $3.46 per pack. Twelve statesd and the District of Columbia have cigarette tax ratew of atleast $2 per pack, and 26 stateas and DC have cigarette tax rate of at least $1 per pack. Tobaccko use is the leading preventable cause of death and diseasein Hawai'i, claiming 1,10p0 lives each year and costing the state $336 millionn annually in health care bills, includingt $117 million in Medicaied payments alone. Government expenditures relatec to tobacco amount to a hidden taxof $622 each year on everuy Hawai'i household. While Hawai'i has made some progresss in reducingyouth smoking, 12.
8 percenf of Hawai'i high school students stilkl smoke and 1,600 more kids become regular smokerw every year.