Cigarette tax hike is solid legislation

Gov. Pat Quinn’s proposal to fund the Medicaid program by increasing the cigarette tax by $1 per pack is poised to be one of the greatest achievements of his administration. The last cigarette tax increase in Illinois occurred in 2002 with bipartisan support, and not since the passage of the Smoke Free Illinois act in 2007 has the legislature had the opportunity to make such an impact on tobacco control.

The American Lung Association in Illinois urges all legislators to support the $1/pack cigarette tax increase. We support this legislation because it will have a substantial impact on the number of Illinois youth who begin smoking each year. By preventing an estimated 77,600 children from starting smoking, and encouraging an estimated 59,400 adults to quit smoking, the cigarette tax increase’s benefits are significant.

Reductions in youth and adult smoking are shown to also reduce Medicaid costs for smoking related illness. In the first year alone, it is estimated that the new tax increase can reduce Medicaid costs by $50 million. In addition to the impact on tobacco control, this increase will be a substantial source of new revenue for the Medicaid program, estimated to generate $377 million in new revenue plus a federal match for over $700 million in total funds. With smoking related illnesses costing the Medicaid program approximately $1.8 billion every year, it is imperative that the legislature take this opportunity to both reduce tobacco use and increase funds to Medicaid.

Harold Wimmer

President & CEO

American Lung Association in Illinois