State lawmakers are considering multiple measures this session to improve the mental and physical health of Hoosiers. The Indiana Chamber believes the best way to improve in these areas – directly and with a dedicated funding stream – is to increase Indiana’s cigarette tax by $2 per pack.
The 2023 legislation to enhance mental health (Senate Bill 1) and public health (Senate Bill 4) programming are expected to pass. What is less certain is how serious lawmakers are about ensuring the initiatives those bills bring about have palatable impact. To do that requires a major investment of state funds.
Indiana currently supports public health at a rate of $55 per person, well below the national average (in 2019) of $91. Until we financially support public health infrastructure, we’ll always struggle to improve health outcomes in Indiana. There’s no way around that.
As for mental health matters, too many Americans are struggling. However, it’s not too late for Indiana to become a leader instead of a follower in this area. Again, to do that takes investing – highlighted by funding the national 988 hotline that is crucial to providing professional support.
Enter the cigarette tax.
Indiana’s adult smoking rate is the eighth highest in the nation and has been too high for years.
Raising the cigarette tax by $2 per pack should be appealing to legislators for the one-two punch it provides: bettering Hoosier health and generating dedicated dollars that can specifically go to the state’s public health and mental health needs.
The Indiana Chamber also proposes placing a parallel tax on all other tobacco/nicotine products – including e-cigarettes – which will further reduce Indiana’s smoking rates, improve health and reduce health care costs. It is important that the tax increase apply to all tobacco/nicotine products at an equivalent rate to encourage people to quit rather than switch to a cheaper product and to prevent youth from starting to use any tobacco/nicotine product.
Such an increase in the cigarette tax will also keep an estimated 24,500 youngsters from becoming adults who smoke or vape and help 50,000 adults quit smoking – and save nearly 20,000 lives. On the financial side of the equation, the higher tax is expected to generate over $370 million in new revenue in the first year, which will provide ample revenue to fund the mental and public health initiatives that are currently being discussed at the Statehouse.
We applaud that the health of Hoosiers has the Indiana General Assembly’s attention. We are urging legislators to connect the dots and enact this common-sense policy to substantially increase the cigarette tax; it would provide immediate and meaningful results that would be felt in every Indiana community. And it would leave more money in the state’s General Fund to be used for other endeavors.
I encourage you to contact your state legislators – particularly your state senator – in support of raising the cigarette tax by $2. Discussions are ongoing and your voice could make a difference.
