Tobacco.org

EDITORIAL: Tobacco-tax revenue should not become a growth industry  

Taxes from sales of tobacco products have boosted state revenues significantly in the past fiscal year.

A TINY stamp, a focused law-enforcement effort and a habit many view as offensive have brought the state a windfall of funds to bolster the state's skinny piggy bank. . .

The revenue generated goes into the state's general fund. Hawaii does not earmark the money for tobacco control or related health programs. Only New Jersey and Utah dedicate funds from higher tobacco taxes for those. Since Hawaii has raided money from its share of a federal lawsuit against tobacco companies, which was supposed to be used for health programs, state officials should consider returning some of the tax revenues for those purposes. Douglas Yee, president of the American Lung Association of Hawaii, says higher taxes work to discourage people, especially the young, from the nicotine habit. However, tobacco and health education are still necessary.

The state is always seeking new ways to generate revenues and the cigarette tax has brought in a strong infusion of cash. However, the windfall isn't all good news when you consider the funds are derived from a deadly human habit. A decrease in tobacco sales would mean smaller tax assessments, but better health and quality of life for Hawaii's citizens. Loss of revenues from cigarette taxes would be a better result.

Jump to full article »