The Public Health Committee of Indiana recently released a major recommendation stating that there is an urgent need to increase national funding for public health.
This is a significant component of their efforts to improve Indiana's healthcare plan. In fact, he suggests increasing funding from the current $55 per person to the national average of $91 per person. While this may not be enough, it is a good starting point.
Historically, the Indiana legislative body has placed public health funding at a very low priority. According to the United Health Foundation's rankings of state health, Indiana ranks 45th (or possibly 48th according to some sources). This is unfortunately a longstanding tradition in Indiana.
The report indicates that Indiana's lack of public health funding is reflected in our poor health outcomes. Indiana has consistently ranked in the bottom 10 for key health measures, resulting in unacceptable human and economic losses. According to data from the Centers for Disease Control and Prevention, Indiana ranks 40th in life expectancy.
It is time to reconsider increasing cigarette taxes once again, not only to deter smoking, but also to provide new revenue to fund many of the proposed initiatives recommended by the committee. This is a clear source of funding.
For the past 25 years, I have called for an increase in cigarette taxes numerous times, yet how many times has the legislature failed to act? The tobacco industry's influence on Indiana lawmakers is dark and profound, often existing indirectly through entities representing it. The first thing I learned in politics is to never expect politicians to do the right thing simply because it is the right thing. It's time to muster political courage and raise cigarette taxes during the upcoming budget conference. It's that simple." said the governor.
The cigarette tax in Indiana is currently 95 cents per pack, with the last increase occurring in 2007. This is significantly lower than the national average of $1.91 per pack. In comparison, neighboring states have higher cigarette taxes with Michigan at $2 per pack, Ohio at $1.60, Illinois at $2.98, Wisconsin at $2.52, and even tobacco-producing state Kentucky at $1.10 per pack. These states have recognized that increasing cigarette taxes can reduce smoking rates, increase cessation rates, deter youth from starting smoking, and increase revenue.
Indiana has some catching up to do. Despite a decrease in smoking rates due to tax increases, economic research has never shown that tax revenue will decrease, even in the highest cigarette tax states such as New York and Connecticut where it is $4.35 per pack.
It is widely known from multiple authoritative sources that increasing cigarette taxes may be the most effective single strategy in reducing smoking rates. When combined with comprehensive and multi-faceted state prevention and cessation programs, it is particularly effective, but such programs have stalled due to lack of funding in Indiana.
According to the American Lung Association, for every 10% increase in the price of cigarettes, adult consumption decreases by approximately 4% and youth consumption decreases by approximately 7%.
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