Smoking Outcomes in Flux: Cigarette Tax in Final Budget

Indiana lawmakers are working on passing a budget that would increase the state's cigarette tax by $2 per pack, aiming to help with the state's budget deficit and Medicaid costs. Public health experts argue that this low tax rate contributes to high smoking rates and associated health costs in the state.

“I think two dollars would have stopped me,” said Christina Yoder, a cancer policy advocate with the American Cancer Society Cancer Action Network, who was diagnosed with breast cancer in 2013. She used to be a smoker herself.

Indiana's current cigarette tax is among the lowest in the nation—only 12 states have a lower rate. According to the American Lung Association, every 10% increase in the price of cigarettes leads to a 4% reduction in adult smoking and a 7% drop among youth.

“It reduces youth initiating,” said Tiffany Nichols, an advocacy director with the American Lung Association. “Young people will decide it's not something they want to do because it's pricier.”

Roughly 14.5% of adults in Indiana smoke. According to the association's annual “State of Tobacco Control” report, Indiana received failing grades for its tobacco prevention funding, cigarette tax levels, and regulation of flavored tobacco products.

“I would like to see that number under at least five percent,” said Nichols. Yoder added that tobacco usage accounts for 34% of Hoosier deaths and $3.4 billion annually in direct health care costs. “We can do better.”