Friday, June 15, 2012
Increasing the federal excise tax on cigarettes by 50 cents per pack eventually would increase Medicare and Social Security spending, because smokers would be healthier and live longer, according to a Congressional Budget Office report released Wednesday, the Fiscal Times reports (Pianin, Fiscal Times, 6/14).
The report found that the tax increase would create short-term deficit reductions. However, by 2085, the costs associated with individuals living longer and consuming more Medicare and Social Security services would outweigh the health benefits and tax revenues, causing the deficit to increase...
CTA would argue that smoking bans have had the same effect, due to smokers quitting their habit and living longer, with one additional negative effect ....smoking bans eliminated 165,000+ jobs.