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Posted on 08/22/2002 5:28:45 PM PDT by SheLion

TEXAS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

Texas smokers comprise only 22% of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

• Smokers Pay Excise Taxes $ 539,157,380
• Smokers Pay Sales Taxes $ 263,003,600
• Smokers Pay Tobacco Settlement Payments $ 339,000,000

$1,141,160,980

• Income
  • Texas smokers’ median income 2000 $27,042

• Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
  • Total average paid per Texas smoker in excise and sales taxes $ 238
  • Cost per Texas smoker for settlement payments to Texas $ 101

Total annual payment to Texas per smoker $ 339

• A $1 per pack increase in the excise tax would be the equivalent of a

1.7% state income tax on the GROSS earnings (no deductions or exemptions)

of an average smoker (1.25 packs per day) with median income

• Texas smoker payments in 2001 were twice as large as state excise taxes on alcoholic beverages ($540 million).
• Texas smoker payments were three and one-half times as large as Texas death and gift tax revenues of $322 million in 2001.
• In 2001, Texas smoker taxes of $1.14 billion represented 41% of Texas motor fuels taxes.
• Texas smoker taxes could supply all the funds the state budgeted in 2001 for:
  • Alcohol and drug abuse prevention, intervention and treatment programs

($154.6 million) AND

• Women, infant and children food and nutrition services ($530.4 million)

AND

• The University of Houston ($185.6 million)

OR

• The entire public community and junior college system ($737.8 million)

AND

• The programs run by the Natural Resources Conservation Commission.

• In 1997, smokers supported 20,778 Texas jobs.

Texas Data Sources

Total packs sold = 1,315,018,000 (Orzechowski & Walker from Texas Comptroller of Public Accounts).

Excise taxes paid= Orzechowski & Walker from Texas Comptroller of Public Accounts..

Sales taxes paid = packs sold multiplied by sales tax rate (6.25% or $.20 per pack).

Settlement payment amount from Campaign for Tobacco Free Kids.

Number of smokers (3,368,499)= Census Bureau 2000 Texas 18+ population (15,311,362) multiplied by CDC’s 2000 percent of Texas adults who are smokers (22%).

Total paid per smoker excise & sales taxes = total excise and sales taxes paid ($802,160,980) divided by number of smokers (3,368,499).

Total paid per smoker for settlement payments = settlement payments amount divided by number of smokers.

Smokers’ median income per CDC’s Behavioral Risk Factor Surveillance System 2000, public use data.

State annual income tax liability from PayBreeze software of General Programming, Inc., San Jose, California, which utilizes the Exact Calculation Method.

Texas smoker facts from U.S. Census Bureau and Texas Legislative Budget Board, Legislative Budget Estimates, 2002-2003 Biennium, online at:

www.lbb.state.tx.us/LBE/2002-2003/Documents.htm

Jobs created and personal/corporate income tax paid from American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.

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