MINNESOTA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - FY2002

24 October 2002

[SheLion]

 MINNESOTA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - FY2002

Minnesota smokers comprise only 22.2%¹ of the adult population in the state. Here is what they already pay because they choose to buy a legal product:

Smokers Pay Excise Taxes2                                                         $169,427,723
Smokers Pay Sales Taxes2                                                             $ 77,623,456
Smokers Pay Tobacco Settlement Payments3                           $362,742,011
                                                                                                                $609,793,190

Smokers’ Economic/Tax Profile

• Income
  • Minnesota smokers’ median income 2001¹ $42,831
  •  
• Minnesota State Tax Liability for Median Income Smoker⁴
•  
  • Annual state income tax liability for a couple $ 1,789
  •  
  • Annual state income tax liability for a couple with two children $ 1,390

• Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability⁵
•  
  • Total average paid per Minnesota smoker in excise and sales taxes   $ 303
  • Cost per Minnesota smoker for settlement payments to the state         $ 445

Total annual payments to Minnesota per smoker $ 748

Minnesota Smoker Facts⁶

• Total smokers’ payments in FY2002 to Minnesota were more than ten times larger than estimated FY2002 state alcohol excise taxes of $59 million.
• Smokers’ payments were 21 times larger than estimated FY2002 lottery revenues of $28.8 million.

• Smokers’ payments were larger than estimated FY2002 motor vehicle sales tax revenues of $418 million.
• Smokers’ payments were twice as large as statewide estimated FY2002 property taxes of $296 million.

• Total smokers’ payments for FY2002 were large enough to support Minnesota’s FY2002 budgeted amounts for: Family and early childhood education ($262.8 million); OR the Department of Corrections ($400 million); OR aid to local governments ($413.6 million); OR the Pollution Control Agency ($124.3 million) AND the Zoological Garden ($19.2 million) AND Minnesota District Courts ($118.5 million) AND aid to police and fire departments ($62.3 million) combined.
• In 1997, smokers provided 8,321 jobs that paid an additional $13.8 million to the state in personal and corporate income taxes.⁷

CIGARETTES DON’T PAY TAXES – MINNESOTA SMOKERS DO!!

1 Centers for Disease Control’s Behavioral Risk Factor Surveillance System, 2001

2 Orzechowski & Walker, Arlington, Virginia; latest estimates from state revenue department

3PriceWaterhouseCooper

4 State annual income tax liability from PayBreeze software of General Programming, Inc., San Jose, California, which utilizes the

Exact Calculation Method.

5 U.S. Census Bureau, 2001 state population estimate and Centers for Disease Control’s Behavioral Risk Surveillance System, 2001

6 Tax and Budget Comparisons are from the State of Minnesota, Department of Finance, "Consolidated Fund Statement, FY 2000 –

2005, End of 2002 Legislative Session," July 15, 2002, online at

http://www.budget.state.mn.us/budget/summary/2002/consolidated_funds.pdf . Expenditures and revenues reflect budgeted

amounts as enacted in May of 2002.

7 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.

[SheLion]

PUFF

[ReadMyMind]

Are you a smoker living in Minnesota?

[BureaucratusMaximus]

If you have a smokers ping list...put me on it pls :)

[Piquaboy]

If states did away with alcohol and cigarette taxes the states would be in a lot worse trouble than they are already.

[Illbay]

Seems to me that the answer is to stop smoking. You deprive the state and the Feds of the revenue, and stop breathing your foul stench into my air.

That way, all of us win except the bureaucrats.

Sweet.

[SheLion]

If you have a smokers ping list...put me on it pls :)

Gotcha added! Thanks!

[SheLion]

INDIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

CALIFORNIA SMOKERS' CONTRIBUTION TO THE STATE ECONOMY - 2001

MICHIGAN SMOKERS' CONTRIBUTION TO THE STATE ECONOMY - 2001

ILLINOIS SMOKERS’ CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MASSACHUSETTS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY-2001

DELAWARE SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY -2001

NEW YORK CITY SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY -2001

RHODE ISLAND SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY 2001

TEXAS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

  PENNSYLVANIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MISSOURI SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

LOUISIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

HAWAII SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

TENNESSEE SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

OREGON SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

NEW JERSEY SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

INDIANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

ARKANSAS SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

GEORGIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MISSISSIPPI SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

MONTANA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

SOUTH CAROLINA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

WEST VIRGINIA SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2001

KENTUCKY SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2002

WISCONSIN SMOKERS' CONTRIBUTIONS TO THE STATE ECONOMY - 2002

[SheLion]

Are you a smoker living in Minnesota?

No. I'm in Maine.

[SheLion]

Seems to me that the answer is to stop smoking. You deprive the state and the Feds of the revenue, and stop breathing your foul stench into my air.

That way, all of us win except the bureaucrats.

Sweet.

[SheLion]

and stop breathing your foul stench into my air.

`sniff `sniff

It that you?

[SheLion]

Seems to me that the answer is to stop smoking.

I will smoke until my dying day just to piss people like you off!

and

Smokers United

[ReadMyMind]

The really ironic thing about smoking is that it tends to kill people before they can rack up huge "late-in-life" health care costs, in effect saving society money. Phillip Morris tried this argument in Czechoslovakia and got their asses handed to them, not on the facts, but on the emotional reaction to the "horror" of pointing out the financial benefits of killing people's mommies.

I got this from an epidemiologist who is not a smoker and is not in favor of smoking. She admits it somewhat sheepishly.

[BureaucratusMaximus]

Seems to me that the answer is to stop smoking.

With that kind out argument...we should stop drinking and buying new cars too. (sheesh)

[Gabz]

Haven't you learned anything yet????

[Malcolm]

I believe in the right for someone to smoke, but beyond that, tobacco is a health menace and a killer. I won't argue that smokers pay more than their share of taxes, but anyone who is familiar with the effects of tobacco on the human body, and it's subsequent drain on the health care system, will not be beating the drum so loudly on this of all issues. If the taxes bother you, quit smoking! Not an easy task, I know from direct experience, but you do have an option to stop.....

[Just another Joe]

If the taxes bother you, quit smoking!

Sounds like excellant advice for our forefathers, eh?
If you don't like the taxes, quit drinking tea!
But don't try to change things in any manner other than that.

[Tucson]

Exactly, what is the "subsequent drain on the health care system"? Seriously. We've been served that mantra but it never provides statistics nor does it compare and contrast those against smoker vs. non-smoker life-time consumption of "benefits" in terms of Social Security benefits paid, and all health care benefits utilized. There was once even an argument that smokers cheated society because their habit caused them to die before they could contribute their full, fair share of taxes to government.

[SheLion]

With that kind out argument...we should stop drinking and buying new cars too. (sheesh)

Thank you!