State Tobacco Tax Increases: Explanations and Sources for Projections of New Revenues & Benefits

The economic model developed jointly by the Campaign for Tobacco-Free Kids, the American Cancer Society Cancer Action Network, and Tobacconomics projects the increase in state revenues, public health benefits, and health care cost savings resulting from increases in state cigarette tax rates. The projections are updated annually. Calculations are based on economic modeling by Frank Chaloupka, John Tauras, and Jidong Huang at the Institute for Health Research and Policy at the University of Illinois at Chicago, and Michael Pesko at Georgia State University. The projections indicate that cigarette tax increases boost state tax revenues and reduce smoking.