The 2009 Federal Tobacco Excise Tax Increase and Youth Tobacco Use

摘要

In early 2009, Congress approved a tobacco tax increase of 61.6-cents per pack of 20 cigarettes and similar tax hikes on other tobacco products, such as on smokeless tobacco. The tax increases were to fund the Children's Health Insurance Program, a program that helps states insure low-income children who are not eligible for Medicaid. The overall tobacco tax hikes led to an immediate 22 percent average increase in retail cigarette prices and a 12 percent increase in retail prices for other tobacco products. In all, the new tobacco excise tax rates boosted federal revenue on tobacco products by about 147 percent, from $7.1 billion in the 12 months preceding the April 2009 tax increase to $17.5 billion in the 12 months after the tax increase.