Cigarette tax increase sought

OLYMPIA – A Republican lawmaker wants to increase the state cigarette tax to $2.50 a pack.

The proposal would deter thousands of young people from taking up the smoking habit and raise $300 million every two years for health care, Rep. Rodney Tom of Medina said Friday.

His plan, which will be scheduled for a hearing by the House Finance Committee, would boost the cigarette tax by more than a dollar from the current $1.425 per pack. The latter rate was set by the voters in 2001, when the rate was boosted 60 cents a pack to expand the state’s subsidized health coverage for the working poor.

The new rate would put the state tax at $25 a carton, the highest rate in the nation.

A pack of Marlboros was selling for $4.89 at the Tumwater Safeway on Friday, or nearly $50 a carton.

Tom hopes that jacking up the tax will significantly reduce smoking, especially among youth, and that the state will be able to hold down tobacco-related health care costs. He said experts calculate that each pack of cigarettes generates $12.70 in health costs.

“It’s time to stop subsidizing the effects of cigarettes so we can direct more resources for priorities like education,” he said. “If we can significantly reduce the numbers of smokers through this measure, especially youth, it will be good for everyone.”

He estimates that his plan would stop 61,000 youth from taking up the habit and prompt 37,000 adults to stop.

“It’s a double win – we bring in $300 million in new revenue and save over $1 billion in future health care costs,” he said in an interview Friday.

Jamie Drogin of Philip Morris USA said the proposed Washington increase is excessive, unfair and bad fiscal policy.

“What we have seen from many other states is a decrease in legitimate sales and a subsequent increase in contraband sales,” she said in an interview. “This will have a negative impact on Washington retailers and on the state. They will not collect the revenue they expect.”