Encourage a Healthier Workforce
Policy Position
Improve Health and Lower Costs by increasing the cigarette tax
Background
As a meaningful step to improve the overall public health of Kentucky’s citizens and the workforce, the Northern Kentucky Chamber of Commerce encourages the General Assembly to increase Kentucky’s excise tax on cigarettes by at least a $1.00 to $1.60 per pack. Regular surveys of business leaders show that healthcare costs are a leading cost driver for businesses. States that have significantly increased their cigarette tax have enjoyed substantial increases in revenue with an initial estimate that $266 million will be generated for Kentucky. More importantly, higher tobacco taxes save employers and the government money by reducing tobacco-related health care costs. In addition, higher cigarette taxes are especially effective in preventing youth under 18 years old from smoking. This is important because 4 out of 5 adult smokers started before they were 18. A cigarette tax increase of $1.00 could prevent 23,200 children in Kentucky from becoming adult smokers, result in 29,400 adult smokers quitting and prevent 14,800 premature smoking related deaths. At $0.60 per pack, Kentucky’s cigarette tax ranks 43rd lowest among the states and is only 36% of the national average of $1.65 per pack. States with higher cigarette taxes have the lowest smoking rates.
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Where We Stand ‘18