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New Mexico Cigarette Tax Increase Delivers Victory for Kids and Taxpayers, But Increase Needs to Be Permanent
Date:3/5/2010

will reduce tobacco use and save lives, a financial win that will help to balance the state budget and fund essential programs, and a political win that polls show is popular with the voters.  We look forward to Governor Bill Richardson signing this legislation into law. Also, to fully achieve the health and revenue benefits, New Mexico should make the increase permanent rather than allowing it to expire in four years, as would happen under the legislation.

The evidence is clear that increasing the cigarette tax is one of the most effective ways to reduce smoking, especially among kids. Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by about 6.5 percent and overall cigarette consumption by about 4 percent. New Mexico can expect the 75-cent cigarette tax increase to prevent 11,100 New Mexico kids from becoming smokers; spur 6,800 current adult New Mexico smokers to quit; save more than 5,300 New Mexico residents from smoking-caused deaths; lock in $259 million in future health care savings; and raise about $31.3 million a year in new state revenue.

However, by failing to raise taxes on other tobacco products to match its new cigarette tax, New Mexico's legislators have missed an opportun
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SOURCE Campaign for Tobacco-Free Kids
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