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Posted on 09/12/2002 3:57:13 PM PDT by SheLion

PENNSYLVANIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

Pennsylvania smokers comprise only 24.3% 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 $327,554,060
• Smokers Pay Sales Taxes $200,758,940
• Smokers Pay Tobacco Settlement Payments $342,000,000

$870,313,000

• Income
  • Pennsylvania smokers’ median income 2000 $26,936
• Median Income Smoker Pennsylvania State Tax Liability $ 754

• Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
  • Total average paid per Pennsylvania smoker in excise and sales taxes $ 232
  • Cost per Pennsylvania smoker for settlement payments to Pennsylvania $ 150

Total annual payment to Pennsylvania per smoker $ 382

Pennsylvania Smoker Facts

• Pennsylvania smoker payments in 2001 were four and a half times larger than state excise taxes on alcoholic beverages in ($187.6 million), and larger than Pennsylvania’s motor fuels tax ($785.7 million).

Pennsylvania Data Sources

Total packs sold = 1,056,626,000 (Orzechowski & Walker from Pennsylvania Department of Revenue).

Excise taxes paid = packs sold times excise tax rate ($.31).

Sales taxes paid = packs sold multiplied by sales tax rate (6% or $.19 per pack).

Settlement payment amount from Campaign for Tobacco Free Kids.

Number of smokers (2,274,034)= Census Bureau 2000 Pennsylvania 18+ population (9,358,163) multiplied by CDC’s 2000 percent of adults who are smokers (24.3%).

Total paid per smoker excise & sales taxes = total excise and sales taxes paid ($528,313,000) divided by number of smokers (2,274,034).

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.

Pennsylvania smoker facts from U.S. Census Bureau and Commonwealth of Pennsylvania, 2000-01 General Fund Enacted Budget Highlights, online at http://sites.state.pa.us/PA_Exec/Budget/.

Jobs created and personal/corporate income tax paid from Economic Impact of Tobacco 1997.

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