Excise Tax Resolution

WHEREAS, the use of tobacco products is the leading cause of preventable death and disability in North Carolina¹; and

WHEREAS, Nearly 10,400 NC children will become regular daily smokers this year²; and

WHEREAS, the best way to prevent and reduce tobacco use by children is to substantially increase the cost of cigarettes³; and

WHEREAS, a cigarette tax increase of $1.00 would result in a 15.4% decrease in youth smoking rates, prevent 81,200 NC children from becoming addicted adult smokers and saving 39,100 young people from premature smoking-related deaths⁴; and

WHEREAS, NC’s cigarette tax is currently 45-cents, the 7th lowest in the nation, and the current average cigarette tax among all states is $1.45; and

WHEREAS, in contrast to NC’s low cigarette tax is the fact that for every pack sold in NC, it costs North Carolina taxpayers $7.17 per pack in health care costs to treat the serious chronic diseases brought on by cigarette smoking; and

WHEREAS, the use of tobacco products costs the State $2.46 billion in direct healthcare costs ($769 million in Medicaid expenses alone), and $3.3 billion in lost productivity annually⁴; and

WHEREAS, North Carolina faces another significant budget deficit for the FY2012-13 budget; and

WHEREAS, these deficits risk cuts to important programs affecting the health and wellbeing of North Carolinians and more reductions may be threatened; and

WHEREAS, an increase in the cigarette tax of $1.00 would generate an estimated $338.4 million in new revenue in the first year⁴.