Federal Tax Raises Cigarette Prices
STATE COLLEGE, CENTRE COUNTY - The dangers of smoking did not push U.S. Congressman Glenn Thompson to vote to reauthorize the Children’s Health Insurance Program – it is the thought that without a “yes” vote, thousands of kids across the country would go without health insurance.
“I’m afraid things could get a little bit worse, before they get better in terms of job lose, there could be a lot more kids going without health care services,” Thompson, (R) 5th District, said.
To help fund that SCHIP program, smokers will pony up 60 cents more for each pack of cigarettes. SCHIP help gives health insurance to youngsters whose parents make more level allowed to receive Medicaid benefits.
“I wasn’t crazy about the funding source, that was a funding source that was carried through since back in 90’s when it was created,” Thompson said.
There are mixed feelings locally about the price hike, which could amount to an additional ten dollars per carton.
“I think right now, we need to generate revenue however we can, be it through extra taxes, whatever’s necessary,” Jim Rinaldi of Port Matilda said.
“They’re so bad for you, maybe it will help if they’re more expensive, people will stop smoking,” Emily Dabney of State College told WTAJ.
“I like the idea of the health insurance for the children, im not sure if its fair to the smokers to increase the price of cigarettes,” Denise Hessler of State College said.
Researchers from the University of Illinois- Chicago found for every ten percent increase in the price of a pack of cigarettes, the youth smoking rate in America drops seven percent. With folks watching their spending, that did not surprise many people on the streets of State College Friday.
“Maybe the kids it will. I think the people that have been long time smokers, they’ve been willing to pay the increasing prices all through the years and the decades,” Rinaldi said.
The Federal Government also thinks this new tax could save some money. A drop in smoking among pregnant women will mean fewer low-birth-weight deliveries. The Congressional Budget Office announced that will save Medicaid $200 million in the next ten years.
Phillip-Morris told WTAJ it has already raised the price of its cigarettes 71 cents in response to the tax. Their brands include Virginia Slims, Marlboro, and Parliament.











