Featured Research

from universities, journals, and other organizations

Big jolt to California economy with new tax on cigarettes

Date:
February 6, 2012
Source:
University of California, San Francisco (UCSF)
Summary:
A new analysis has found that a state ballot initiative to increase the cigarette tax would create about 12,000 jobs and nearly $2 billion in new economic activity in California.

A new UCSF analysis has found that a state ballot initiative to increase the cigarette tax would create about 12,000 jobs and nearly $2 billion in new economic activity in California.

Related Articles


The study found that the new tax would have a significant effect on the state's overall economy because Californians would smoke less and spend their money in other ways.

The initiative, the California Cancer Research Act (CCRA), is on the statewide June 5 ballot. If the measure is approved, state cigarette taxes would rise by $1 a pack, generating an estimated $855 million a year for anti-smoking education programs, medical research, and tobacco law enforcement.

"The primary impact to the California economy, besides the effect on health care, is that people will smoke less and send less money out of state,'' said study author Stanton A. Glantz, PhD, a professor of medicine at UCSF and director of the Center for Tobacco Control Research and Education based at UCSF.

Currently, approximately 80 percent of money spent on tobacco products is exported to out-of-state tobacco manufacturers and farmers. No tobacco is grown in California and no cigarettes are manufactured here.

Under the legislation, 60 percent of funds generated by the new tax would go to cancer research and to address other tobacco-related diseases, 20 percent toward tobacco cessation and prevention programs, and 15 percent toward facilities and equipment for health services and research. The remainder would go to law enforcement to reduce cigarette smuggling and tobacco tax evasion, and to administer the tax.

The state's independent Legislative Analysts' Office has calculated that the new tax could save more than 100,000 people from smoking-related deaths.

On September 15, 2011, the UC Board of Regents endorsed the initiative. UC campuses are allowed to use their resources to objectively evaluate a ballot measure's impact and to provide educational materials and information.

Glantz' report of the analysis, which estimates both the direct and indirect effects of the initiative on employment and economic activity in California, uses standard estimates of jobs created and economic multipliers categorized by economic sector from the U.S. Department of Commerce.

If the new tax is approved, the study reports, it would cause some loss of retail jobs due to fewer retail sales -- a loss that would be more than offset by a projected 12,000 new jobs in the California economy as a whole as well as in medical research, construction and other activities directly funded by the CCRA.

Altogether, the CCRA would generate a projected $1.9 billion in total economic activity.

A previous UCSF study co-authored by Glantz and James Lightwood, PhD, associate adjunct professor in the UCSF School of Pharmacy, estimated the ballot measure could save California up to $32 billion in health care costs over the next five years. Without the tax, the study concluded, the state's tobacco control program would become less effective over time because inflation is eroding the five cents per pack currently allocated to tobacco control activities.


Story Source:

The above story is based on materials provided by University of California, San Francisco (UCSF). Note: Materials may be edited for content and length.


Cite This Page:

University of California, San Francisco (UCSF). "Big jolt to California economy with new tax on cigarettes." ScienceDaily. ScienceDaily, 6 February 2012. <www.sciencedaily.com/releases/2012/02/120206174211.htm>.
University of California, San Francisco (UCSF). (2012, February 6). Big jolt to California economy with new tax on cigarettes. ScienceDaily. Retrieved January 28, 2015 from www.sciencedaily.com/releases/2012/02/120206174211.htm
University of California, San Francisco (UCSF). "Big jolt to California economy with new tax on cigarettes." ScienceDaily. www.sciencedaily.com/releases/2012/02/120206174211.htm (accessed January 28, 2015).

Share This


More From ScienceDaily



More Health & Medicine News

Wednesday, January 28, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Malnutrition on the Rise as Violence Flares in C. Africa

Malnutrition on the Rise as Violence Flares in C. Africa

AFP (Jan. 28, 2015) Violence can flare up at any moment in Bambari with only a bridge separating Muslims and Christians. Malnutrition is on the rise and lack of water means simple cooking fires threaten to destroy makeshift camps where people are living. Duration: 00:40 Video provided by AFP
Powered by NewsLook.com
Poultry Culled in Taiwan to Thwart Bird Flu

Poultry Culled in Taiwan to Thwart Bird Flu

Reuters - News Video Online (Jan. 28, 2015) Taiwan culls over a million poultry in efforts to halt various strains of avian flu. Julie Noce reports. Video provided by Reuters
Powered by NewsLook.com
Media Criticizing Parents For Not Vaccinating Children

Media Criticizing Parents For Not Vaccinating Children

Newsy (Jan. 28, 2015) As the Disneyland measles outbreak continues to spread, the media says parents who choose not to vaccinate their children are part of the cause. Video provided by Newsy
Powered by NewsLook.com
Shark Bite Victim Making Amazing Recovery

Shark Bite Victim Making Amazing Recovery

AP (Jan. 27, 2015) A Texas woman who lost more than five pounds of flesh to a shark in the Bahamas earlier this month could be released from a Florida hospital soon. Experts believe she was bitten by a bull shark while snorkeling. (Jan. 27) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins