PENNSYLVANIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

12 September 2002

[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

Smokers’ Economic/Tax Profile

• 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).

• Smokers’ payments were almost two-thirds (62%) as large as state net corporate income tax collections ($1.4 billion).

• The total amount paid by smokers in Pennsylvania could support General Fund budgeted amounts (2000-01) for:

• Homeowners Property Tax Rebates ($330 million) and Penn State University ($331 million)

OR

• Special Education ($780 million)

OR

• Pupil Transportation ($410.2 million)

OR

• Mental Health Services ($590 million).

• In 1997, smokers provided 18,943 jobs that paid an additional $28,233,855 to the state in personal and corporate income taxes.

CIGARETTES DON’T PAY TAXES – PENNSYLVANIA SMOKERS DO!!

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.

[SheLion]

INDIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

CALIFORNIA SMOKERS' CONTRIBUTION TO THE STATE ECONOMY - 2001

MICHIGAN SMOKERS' CONTRIBUTION TO THE STATE ECONOMY - 2001

ILLINOIS SMOKERS’ CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MASSACHUSETTS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY-2001

DELAWARE SMOKERS' CONTRIBUTIONS TO THE STATE ECOMOMY -2001

NEW YORK CITY SMOKERS' CONTRIBUTIONS TO THE STATE ECOMOMY -2001

RHODE ISLAND SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY 2001

TEXAS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MISSOURI SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

LOUISIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

HAWAII SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

TENNESSEE SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

OREGON SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

NEW JERSEY SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

INDIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

ARKANSAS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

GEORGIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MISSISSIPPI SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MONTANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

SOUTH CAROLINA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

WEST VIRGINIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

[SheLion]

[BriarBey]

Very Good!!! I am new to Free Republic and was wondering
when someone would bring out the facts of what is being done to people who have the right to choose to indulge in a
legal substance. Smokers have become the new cash cow to try to erase a state's deficit. I am ticked!!! Time for another tea party?

[facedown]

Bump

[BriarBey]

TO ADD!! Smokers should unite and vote out anyone so brazen as to take away the freedoms we have so much enjoyed.
AND I HATE SEATBELTS!! or being FORCED to use them. I feel more squeezed by the day!! More controlled and angry!

[SheLion]

Smokers have become the new cash cow to try to erase a state's deficit. I am ticked!!! Time for another tea party?

Hi there BriarBey! Well, the general public has NO idea that the Tobacco Settlement money being paid into each state is paid for 100% by the smokers who pay taxes on cigarettes! The general public thinks the Big Tobacco or the Government is paying this. WRONG! WE ARE!

If you would like on my Puff_List, let me know!!!

[altair]

AND I HATE SEATBELTS!! or being FORCED to use them.

I am alive because of seatbelts, but I don't like seatbelt laws.

[BriarBey]

I just hate seatbelts and seatbelt laws. But I certainly
don't condemn those who choose them. I like a shower better than an bath. The day they force me to take a bath
I'll hate baths. LOL

[Jaidyn]

I got a broken collar bone from my seatbelt. Don't know what would have happened if I didn't have it on since it was just a fender bender. The belt in my other car chafed my skin and I had to put padding between it and me. That said, the laws are stupid! People can evaluate their own risks.