Why Increase the Cigarette Tax by $1.00 ?

The Communities for a Clean Bill of Health (CCBH); a collective, independent voice of public, private, professional, and nonprofit organizations, service and citizen groups, and businesses; is working to promote a $1.00 per pack cigarette tax increase in Mississippi. The coalition is made up of over 40 national, state and local organizations, including The American Cancer Society, The American Lung Association, The American Heart Association, AARP, the Children’s Defense Fund, Mississippi Alliance for School Health, and Mississippi Health Advocacy Program

Why increase the cigarette tax by $1.00? It is only at a $1.00 increase that we reach the maximum health and financial benefits of a cigarette tax. Numerous Econometric studies have found that for every 10% increase in the price of cigarettes there is a 3% to 5% reduction in overall cigarette consumption. The average price of cigarettes in Mississippi is $3.55. If the excise tax was increased by only 25 cents that would increase the average price to $3.80—only a 7% increase. That would have zero affect on consumption.

If the excise tax was increase by $1.00 it would result in a 20% reduction in youth smoking and 23,400 adults would quit smoking. The state would also witness $971 million in long-term healthcare savings while producing $184 million in new revenue from the tax.

For every pack of cigarettes sold in Mississippi the state spends $8.37 on smoking related costs while bringing in only 41 cents in excise and sales taxes. Healthcare for smokers is being subsidized by all other hardworking Mississippians. The State Division of Medicaid alone is spending $264 million each year on smoking related healthcare costs.

The effects of smoking, and other forms of chronic illness, hinder Mississippi’s potential in significant ways. Mississippi has long been at, or near, the bottom of every health care statistic available. The situation is so dire, that former State Health Officer, Dr. Ed Thompson coined the phrase “worst firsts” to describe the fact that Mississippi leads the country in prevalence of diabetes, heart disease death rate, lack of breast cancer screenings in women over the age of 50, population served by primary care physicians, and age-adjusted death rate.


Without exception, each state that has significantly increased its cigarette tax has experienced substantial increases in revenue and reduced smoking. The revenue from the tax increases have helped states balance budgets and helped to fund essential services like health care, education and tobacco prevention programs.