Skip to comments.DELAWARE SMOKERS' CONTRIBUTIONS TO THE STATE ECOMOMY -2001
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
Total $ 50,250,160
Smokers Economic/Tax Profile
Delaware smokers median income 2000
Median Income Smoker Delaware State Tax Liability
Annual state income tax liability for a couple
Annual state income tax liability for a couple with two children
Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability
Total average paid per Delaware smoker in excise and sales taxes
Cost per Delaware smoker for settlement payments to Delaware
Total annual payment to Delaware per smoker
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 states estimated 2002 expenditures on:
Natural Resources and Environmental Control ($37.7 million)
Delaware State University ($27.3 million) and Child Support Enforcement ($19.7 million)
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 DONT 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 CDCs 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 CDCs 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 Governors 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.
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.