No Butts About It

News Type: 
News Article
July 22, 2010
As part of the tobacco industry’s 1998 settlement with 46 states, the participating cigarette manufacturers pay each state a payment that is dependent upon the number of smokers in each state. However, anti-smoking campaigns in addition to increased state and federal excise taxes have resulted in fewer smokers nationwide.  States have relied on these payments to fund significant portions of state budgets but fewer smokers have meant reduced revenues for the states.  While the long-term health outlook calls for fewer cigarette related costs, short term state budgets are taking a hit. 
 
Click here for Stateline.org’s report.
Click here for the American Legacy Foundation’s policy on cigarette excise taxes.