Tobacco tax increases motivate IU students to quit

No one knows better than Phillip Morris how an increase in taxation on their product decreases the use of it. “Of all the concerns, there is one – taxation – that alarms us the most. While marketing restrictions and public and passive smoking (restrictions) do depress volume, in our experience taxation depresses it much more severely.”

Research has shown again and again that an increase in the price of tobacco either from the tobacco companies or taxation reduces the use of the product. This effect is particularly strong among youth and those who are beginning the habit.

We have seen evidence of this firsthand in Indiana when, in March 2009, the cigarette companies increased their prices. Call volumes to the statewide 1-800-QuitNow number skyrocketed. The same increase was seen for attendance to cessation classes in the community and at the IU Health Center.

Even more have come in since the federal tax increase of 62 cents went into effect on April 1, 2009.

Youth and young adults are more affected by a tax hike than adults with stable income and employment. At the IU Health Center, we have seen that economic motivation to quit is real for students.

A pack-a-day smoker spends about $180 per month just for cigarettes. That could easily be a car payment. At $2,200 per year, one could take a pretty good vacation. These numbers do not count days lost for work or school and the lost productivity that always comes with tobacco use.

Researchers have watched the declining trend of tobacco use with the increase of price since the 1970s. Estimates show that for every 10 percent tobacco price increase, there is about a 5 percent decrease in use overall and 7 percent in youth.

As taxes increase and people are economically motivated to quit, it is important that state and federal government as well as non-government agencies provide resources to help them.

People are much more likely to succeed if they are provided with proven methods like counseling, quit lines and FDA-approved medications. It is because of such funding that we are able to provide these services for free at the IU Health Center and at Bloomington Hospital.

Neva Cottam
Tobacco Cessation Educator, IU Health Center