Smokers Pay Excise Taxes $1,105,227,120
Smokers Pay Sales Taxes $ 343,001,520
Smokers Pay Tobacco Settlement Payments $ 759,300,000
Total $2,207,528,640
Posted on 08/01/2002 2:59:08 AM PDT by SheLion
California smokers comprise only 17.2% 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
$1,105,227,120 Smokers Pay Sales Taxes
$ 343,001,520 Smokers Pay Tobacco Settlement Payments
$ 759,300,000
Total $2,207,528,640
Smokers Economic/Tax Profile Income
California smokers median income 2000
$26,500
Median Income Smoker California State Tax Liability
Annual state income tax liability for a couple
$ 139
Annual state income tax liability for a couple with two children
$ 0
Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
Total average paid per California smoker in excise and sales taxes
$ 342
Cost per California smoker for settlement payments to California
$ 179
Total annual payment to California per smoker
$ 521
Proposed $.50 increase per pack for average median income smoker is equivalent to a state income tax rate increase of:
164% for a couple
State income taxes on annual earnings of $36,000 for a couple with two children
California Smoker Facts
California smoker payments of $2.2 billion were more than seven and one-half times larger than state excise taxes on alcoholic beverages in 2001 ($288.5 million), and nearly three-quarters (70%) as large as California's motor fuels tax ($3.1 billion).
Smokers's payments were 32% as large as state net corporate income tax collections ($6.9 billion).
The total amount paid by smokers in California could support 2001-2002 funding for:
The Targeted Instructional Improvement Block Grant, which aids low-achieving pupils ($1.2 billion) AND park and water bonds ($966.6 million)
OR
Healthy Families Program ($648.7 million) AND The Department of Alcohol and Drug Programs ($643.3 million) AND Environmental restoration and water management in the San Francisco Bay and Sacramento-San Joaquin River Delta ($571 million) AND The AIDS Drug Assistance Program ($162.9 million).
In 1997, smokers supported 27,873 jobs that paid an additional $45,835,903 to the state in personal income and corporation taxes.
CIGARETTES DON'T PAY TAXES-CALIFORNIA SMOKERS DO!!
California Data Sources
Total packs sold = 1,270,376,000 (Orzechowski & Walker from California Department of Revenue).
Excise taxes paid= Orzechowski & Walker from California Department of Revenue packs sold.
Sales taxes paid = packs sold multiplied by sales tax rate (7.25% or $.27 per pack).
Settlement payment amount from Campaign for Tobacco Free Kids.
Number of smokers (4,235,446)= Census Bureau 2000 California 18+ population (24,624,688) multiplied by CDC's 2000 percent of adults who are smokers (17.2%).
Total paid per smoker excise & sales taxes = total excise and sales taxes paid ($1,448,228,640) divided by number of smokers (4,235,446).
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.
Equivalent state income tax percentage increase based on average smoker rate of 1.25 packs per day and proposed tax increase of $.50 per pack.
California smoker facts from U.S. Census Bureau and California Department of Finance, 2001-2002 California State Budget Highlights, online at Here
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.
California Data Sources
Total packs sold = 1,270,376,000 (Orzechowski & Walker from California Department of Revenue).
Excise taxes paid= Orzechowski & Walker from California Department of Revenue packs sold.
Sales taxes paid = packs sold multiplied by sales tax rate (7.25% or $.27 per pack).
Settlement payment amount from Campaign for Tobacco Free Kids.
Number of smokers (4,235,446)= Census Bureau 2000 California 18+ population (24,624,688) multiplied by CDC’s 2000 percent of adults who are smokers (17.2%).
Total paid per smoker excise & sales taxes = total excise and sales taxes paid ($1,448,228,640) divided by number of smokers (4,235,446).
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.
Equivalent state income tax percentage increase based on average smoker rate of 1.25 packs per day and proposed tax increase of $.50 per pack.
California smoker facts from U.S. Census Bureau and California Department of Finance, 2001-2002 California State Budget Highlights, online at Here
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.
Much to my dismay, not yet. I am DYING to get ahold of it.
Shoot, Steve! I have Arkansas, Arizona, California, Delaware, Hawaii, Florida, Indiana, Louisiana, Michigan, Mississippi,Missouri, Montana, North Carolina, Oregon, Pennsylvania, Tennessee and Texas.
I should have some more soon.
Total packs sold = 1,270,376,000From these numbers we can calculate that the average pack costs $3.60. And that, with sales tax, California smokers spent $4,916,355,120.00 on cigarettes, or almost $5 billion.Sales taxes paid = packs sold multiplied by sales tax rate (7.25% or $.27 per pack).
Number of smokers (4,235,446)
Dividing by the (estimated) number of smokers shows us that the average smoker spends $1,161 on cigarettes each year, inclusive of taxes.
FYI, purchasers of loose tobacco pay neither the settlement costs nor the excise tax, only the sales tax (on a lower priced product). Roll your own and avoid taxes!
Thanks so much! But for your information, I HAVE been rolling my own for over a year. I can roll a beautiful carton for UNDER $8.00. And the savings is mind-boggling!
And just the fact that our hard earned money isn't going into the state coffers anymore is SO sweet!! Thanks, Diogenes!!
I hate to be a wet blanket, but this is only partially correct.
There is actually an excise tax on loose tobacco - it's not a cigarette tax - it is an OTP (other tobacco product) tax. OTP taxes apply to loose cigarette tobacco, pipe tobacco, cigars, chewing tobacco and snuff.
I'm not sure how the fderal tax works on it - but the states calculate this tax as a percentage of the wholesale price, similar to aregular sales tax. They do work out to be much lower than the cigarette taxes all the way around.
I'm getting a niggling feeling up the back of my neck that those of us rolling our own and promoting the practice should start being a bit more circumspect about it. the same with promoting the internet option for those who choose not to make them.
WE all know how powerful this forum is - we know politicos read here on a regular basis - and we are all well aware of the anti-smoker faction that not only reads, but harrasses us here.
It's just something I've been thinking about, and something we all might want to think about as well. FReepmail is a wonderful alternative to get info to folks or to share email addy's!!!! (thank you JR!!!)
Just some thoughts ......................
I'm afraid you're right. You've burst my bubble. The best I've found is that the excise tax is the same on cigarrettes as on other tobacco products, 56% of wholesale (whew!). Of course, the wholesale cost is much lower.
I'm getting a niggling feeling up the back of my neck that those of us rolling our own and promoting the practice should start being a bit more circumspect about it. the same with promoting the internet option for those who choose not to make them.
Always somebody watching, eh? You may be right.
I have Arkansas, Arizona, California, Delaware, Hawaii, Florida, Indiana, Louisiana, Michigan, Mississippi,Missouri, Montana, North Carolina, Oregon, Pennsylvania, Tennessee and Texas.
I should have some more soon.
I should have some more soon.
Unless you're am addicted smoker whose life revolves around cigarettes the answer is simple.
California Smokers' voluntary Contribution To The State Economy -2001/For Informational Purposes
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