Tobacco Documents Online

~^ 25th Congressional District, Texas Phone: (202) 225-7508 303 Cannon, Washington, D.C. 20515 STATEMENT OF CONGRESSMAN MICHAEL A. ANDREWS COMMITTEE ON WAYS AND MEANS NOVEMBER 18, 1993 Mr. Chairman, I strongly support the President's proposal to increase the tobacco tax by 75 cents. The President deserves a great deal of credit for engaging the health care debate. The tobacco tax proposal shows that he is serious not just about health care reform, but also the health of Americans. The leaders of the health care debate -- regardless of the plan they support -- agree on the importance of a tobacco tax. Earlier this year, my colleagues Jim McDermott, Pete Stark, Sander Levin, and Ben Cardin joined me to introduce legislation to help pay for health care reform with tobacco taxes. One of the key reasons is that illnesses related to cigarette smoking are responsible for approximately $24 billion of the nation's health care bill, but the current tax on tobacco generates only $14.5 billion in revenue. The 75 cent increase is just a downpayment on recovering the cost of smoking -- smoking costs our country $40 billion in lost productivity. As the first chart shows, we rank at the bottom among developed nations for tobacco tarx rates. A tobacco tax increase of $2.00 per pack would not be out of line. A tobacco tax stops children from smoking and saves lives. The next chart shows that we are now losing the war to stop teenage smoking. Children recognize Old Joe, the cartoon character in advertisements for Camel cigarettes, as readily Mickey Mouse. The smokers of tomorrow are the children of today. Nine of every ten smokers start by age 19. Studies show that a 75 cent increase will save nearly one million lives over time and prevent more deaths than illicit drugs have caused throughout U.S. history. It will stop millions of children from starting to smoke. Inflation has dramatically lowered the tobacco excise tax. Tobacco excise taxes are not indexed. The next chart shows that tobacco taxes have fallen as a percentage of retail price over the last twenty years. Finally, tobacco remains the number one preventable cause of death in our country. The last chart shows that tobacco use causes more deaths in America that alcohol, car accidents, AIDS, homicides, suicides, drugs and fires combined. So much of health care reform is complicated. The tobacco tax issue is simple: tobacco kills and should be taxed to pay for health care reform.