Proposed State Tax On Cigarettes Could Create 12,000 Jobs
The California Cancer Research Act (CCRA), a statewide June 5 ballot initiative, aims to increase the tax on cigarettes, and a recent University of California, San Francisco (UCSF) study says the initiative would create thousands of jobs and significantly boost the state's overall economy.
If the measure, also known as Prop 29, is approved, state cigarette taxes would increase by $1 a pack, generating an estimated $855 million annually for anti-smoking education programs, medical research and tobacco law enforcement, reports UC Newsroom. Additionally, the tax would create approximately 12,000 jobs and nearly $2 billion in new economic activity in the Golden State. The study says the tax would force Californians to smoke less, thus spend their money in other ways.
Study author Stanton A. Glantz, a professor of medicine at UCSF and director of the Center for Tobacco Control Research and Education based at UCSF, says, "The primary impact to the California economy, besides the effect on health care, is that people will smoke less and send less money out of state." The state's independent Legislative Analysts' Office calculated that the tax could help prevent more than 100,000 smoking-related deaths. California does not grow tobacco or manufacture cigarettes, and about 80% of the money Californians spend on tobacco products is exported to out-of-state manufacturers and farmers.
The measure defines the allocation of funds generated by the new tax as follows: 60% to cancer research and to address other tobacco-related diseases, 20% toward tobacco cessation and prevention programs, 15% toward facilities and equipment for health services and research and 5% to law enforcement to reduce cigarette smuggling and tobacco tax evasion and to administer the tax.
Although the tax would create some retail job loss due to fewer retail sales, the study finds that the loss "would be more than offset by a projected 12,000 new jobs in the California economy as a whole as well as in medical research, construction and other activities directly funded by the CCRA," according to UC Newsroom.
The UC Board of Regents endorsed the initiative in September 2011, giving the San Francisco campus the greenlight to put their resources toward objectively evaluating the measure's impact, as well as school the public in the initiative. A previous UCSF study by Glantz and James Lightwood, associate adjunct professor in the UCSF School of Pharmacy, said that, without the tax, the state's tobacco control program would become less effective over time. The current five cents per pack allocated to tobacco control activities is slowly crumbling along with inflation.
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