Posted on 08/12/2002 7:39:30 PM PDT by SheLion
Delaware smokers comprise only 23% 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 MBR> $ 26,750,160
Smokers Pay Tobacco Settlement Payments
$ 23,500,000
Total $ 50,250,160
Smokers’ Economic/Tax Profile
Income
Delaware smokers’ median income 2000
$37,621
Median Income Smoker Delaware State Tax Liability
Annual state income tax liability for a couple
$ 1,121
Annual state income tax liability for a couple with two children
$ 901
Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
Total average paid per Delaware smoker in excise and sales taxes
$ 197
Cost per Delaware smoker for settlement payments to Delaware
$ 173
Total annual payment to Delaware per smoker
$ 370
Proposed $.35 increase per pack for average median income smoker is equivalent to an income tax rate increase of:
14.3% for a couple
17.8% for a couple with two children
Delaware Smoker Facts
Delaware smoker payments in 2001 were more than four times as large as state excise taxes on alcoholic beverages of $11.5 million.
Delaware smoker taxes could supply all the state’s estimated 2002 expenditures on:
Natural Resources and Environmental Control ($37.7 million)
OR
Delaware State University ($27.3 million) and Child Support Enforcement ($19.7 million)
OR
The Aged and Adults with Disabilities ($18 million) and Community Corrections ($32 million).
In 1997, smokers supported 1,246 jobs that paid an additional $1,734,101 in state and local personal income and corporate taxes.
CIGARETTES DON’T PAY TAXES – DELAWARE SMOKERS DO!!
Delaware Data Sources
Excise Taxes Paid= Orzechowski & Walker from Delaware Department of Revenue.
Settlement payment amount from Campaign for Tobacco Free Kids.
Number of smokers (135,531)= Census Bureau 2000 Delaware 18+ population (589,267) multiplied by CDC’s 2000 percent of adults who are smokers (23%).
Total paid per smoker excise taxes = total excise taxes paid ($26,750,160) divided by number of smokers (135,531).
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 of $.35 based on average smoker rate of 1.25 packs per day.
Delaware smoker facts from U.S. Census Bureau and State of Delaware Office of the Budget, Fiscal Year 2003 Governor’s Recommended Operating and Capital Budget Information (Online at www.state.de.us/budget/).
Jobs created and personal/corporate income tax paid from Economic Impact of Tobacco 1997.
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
I will provide my commentary in the morning!!!!
Considering that PA, MD and NJ all raised their cigarette taxes this year, I suspect that $50million will take a hefty jump during this coming fiscal year.
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