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Big jolt to state economy with new tax on cigarettes
Date:2/6/2012

materials and information.

Glantz' report of the analysis, which estimates both the direct and indirect effects of the initiative on employment and economic activity in California, uses standard estimates of jobs created and economic multipliers categorized by economic sector from the U.S. Department of Commerce. It is available online as part of the University of California's eScholarship program at http://escholarship.org/uc/item/73g8m5j5

If the new tax is approved, the study reports, it would cause some loss of retail jobs due to fewer retail sales a loss that 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.

Altogether, the CCRA would generate a projected $1.9 billion in total economic activity.

A previous UCSF study co-authored by Glantz and James Lightwood, PhD, associate adjunct professor in the UCSF School of Pharmacy, estimated the ballot measure could save California up to $32 billion in health care costs over the next five years. Without the tax, the study concluded, the state's tobacco control program would become less effective over time because inflation is eroding the five cents per pack currently allocated to tobacco control activities.

The new report notes that as a biomedical research center, UCSF conducts the type of research that the CCRA likely would fund.


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Contact: Elizabeth Fernandez
elizabeth.fernandez@ucsf.edu
415-502-6397
University of California - San Francisco
Source:Eurekalert  

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