MINNESOTA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - FY2002

24 October 2002

[SheLion]

I believe in the right for someone to smoke, but beyond that, tobacco is a health menace and a killer. I won't argue that smokers pay more than their share of taxes, but anyone who is familiar with the effects of tobacco on the human body, and it's subsequent drain on the health care system, will not be beating the drum so loudly on this of all issues. If the taxes bother you, quit smoking! Not an easy task, I know from direct experience, but you do have an option to stop.....

Aren't you sweet.

However, there are millions of smokers out here, and a LOT of us are CONSERVATIVE, that do not WISH to stop smoking. Does anyone ever understand this? We WANT to smoke.

It's legal! It's been legal for DECADES. I wonder how many times I have to repeat myself:

The Tobacco Settlement Money (MSA) brings at least $50 million per YEAR into each state. This money was supposed to be spent on Tobacco Education and to pay for ANY sick smoker ON WELFARE should there BE any.

However, the states saw what a huge windfall this money is, and started balancing budgets, building gold courses, planting gardens, sponsoring Race Tracks, you name it.....hardly anything is going to the sick smoker ON WELFARE should there BE any!

So, if any of us are paying for the sick smoker ON WELFARE, we must blame the state we live in! Most Conservative smokers HAVE our own health insurance, thank you!

The Congressional Research Service, in the 1998 revision of their study found: Smokers cost the federal government $9 billion in medical care and $10 billion in lost contributions to social security, etc. But they also found they save $40 billion in retirement costs (mostly social security), about $8 billion in nursing home costs (mostly from Medicaid), and they collect $5.6 billion in cigarette taxes. When added up, smokers saved the federal government $34.6 billion dollars yearly.

State governments saved money too. After subtracting net medical costs of $1.5 billion and $1.8 billion from lost contributions from a savings of $4.8 billion in nursing home costs financed through Medicaid and $.6 billion in retirement savings, and $7.6 billion in cigarette taxes, smokers saved the states almost $9.7 billion.

That's a total saving of $44.3 billion.

Since this 1998 report, taxes have skyrocketed on cigarettes in many states and the tobacco settlement was signed. The settlement was for reimbursement of past and future medical expenses, so states have not only been reimbursed, but smokers are paid up to infinity on future medical costs.

Leaving out new taxes and the settlement, smokers have been overpaying the state and federal governments for an average $950 each year I figure. But to be fair, there are about the same number as former smokers as smokers so if there is ever a rebate given, it should be split up between the two groups and average about $475 each, each year.

Now, the state insurance program may feel the effects of smoker’s costs, but either it should be taken out of the excise tax or figured into the tobacco settlement, which supposedly covers it.