On September 1st, cigarette taxes will increase by $1. Where does the money from the cigarette tax go, though? This is a component of the governor’s “Lead the Way For a Tobacco Free Generation” initiative. And will customers actually stop buying as a result of the price change? Amal Tlaige, one of our Capitol Correspondents, has the information after speaking with specialists.
Taxes on cigarettes will be $5.35 per pack in September
According to Adam Hoffer, Director of Excise Tax Policy at the Tax Foundation, New York is in a peculiar situation when it comes to raising its cigarette rates because it already has the highest cigarette tax rate in the country.
A report from Rochister First, taxes on cigarettes will be $5.35 per pack starting in September. Hoffer expressed his opinion on whether or not this would result in more people quitting, but the real question is how many less people would buy it. And when it comes to addictive substances, the truth is that very few individuals will actually stop smoking as a result of this dollar-per-pack tax rise.
Where does that money actually go?
According to Hoffer, 76% of the money collected from the sale of cigarettes goes toward funding health care. Thus, the total amount of cigarette tax income collected last year was close to $1 billion. The state’s general funds receive the balance.
The American Lung Association’s Director of Advocacy, Trevor Summerfield, stated that the organization fought hard to ensure that New York had the highest cigarette tax in the country together with our activists and other partners around the state. They are aware that doing so will cause people to give up and act as a barrier for kids. According to research, and from personal experience, people are more inclined to give up smoking when prices go up, reports from News 10 ABC.