Taxes paid by Smokers:
State of Texas, 2002 Statistics
Texas Smokers' Contributions to the State
Economy, 2003
Comparing number of six-packs of
beer that must be sold in Texas to produce the
same state excise tax revenue generated by one
carton of cigarettes: 36.8
Comparing the number of bottles
fo wine that must be sold in Texas to produce the
same state excise tax revenue generated by one
carton of cigarettes: 101.4
Texas Smokers'
Contributions to the State Economy, 2003
In 2002, Texas smokers conprised
22.9 percent of the adult population in the
state. Here is what they already pay because they
choose to buy a legal product. (In 2005, the
Texas Legislature added $1 to the taxes placed on
a package of cigarettes. This additional tax is
supposed to go toward public education in the
state.)
Smokers Pay Excise Taxes(2):
....................................$...490,719,000
Smokers Pay State
Taxes(2):.......................................$...251,268,000
Smokers Pay Tobacco Settlement
Payments(3):...........$...494,918,000
Total...........................................................................
$.1,236,905,000
(In words,
that's one billion, 236 million, 900
hundred and five thousand dollars.
Remember this will be a much higher amount when
the additional Texas taxes on cigarettes go into
effect and Texas smokers are paying for your
child's education.)
Smokers' Economic/Tax Profile 2002
| Texas smokers'
median household income |
$ |
29,913 |
| Texas
nonsmokers' median household
income |
$ |
38,113 |
- Working Families
Pay More1
- 41% of Texas smokers had household income
LESS THAN $25,000
12%
of Texas smokers had household income EQUAL
TO or GREATER THAN
$75,000
The impact of smoker payments on the
incomes of working families was more than
THREE TIMES the impact
on higher income smokers. Those who can
afford it least pay a disproportionate
percentage of their hard-earned income in
smoker payments.
- Smoker
excise tax/sales tax/tobacco
settlement payments liability in
20024
| Total
average paid per Texas
smoker in excise and
sales taxes |
$ |
216 |
| Cost
per Texas smoker for
settlement payments to
Texas |
$ |
144 |
| Total
annual payments to Texas
per smoker |
$ |
360 |
| Total
annual payments to Texas
per nonsmoker |
$ |
0 |
Texas Smoker Facts 5
Total smoker payments to Texas in FY2003 were:
- More than twice as large as FY2003 state
excise taxes on alcohol ($567.8 million).
- Larger than FY2003 oil production taxes
($423.6 million).
- More than six times as large as
inheritance tax collections ($186.8
million) in FY2003.
- Texas FY2003 smoker taxes would have
covered funds budgeted for FY2003 for:
- Public Community/Junior Colleges
($733.4 million) AND
the Department of Health ($451.1
million - general revenue funds
only) OR
- Department of Mental Health and
Retardation ($1.1 billion -
general revenue funds only) OR
- UT-Austin ($365 million) AND
Texas A&M University ($279.9
million) OR
- Parks and Wildlife Department
($250.2 million) AND the
Commission on Environmental
Quality ($374.8 million) AND
the Department of Housing and
Community Affairs ($204.6
million).
Sources:
- 1 Centers for Disease
Control's Behavioral Risk Factor
Surveillance System, 2002
2 Orzechowski & Walker,
Arlington, Virginia; from state revenue
department.
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000
state population and Centers for Disease
Control's Behavioral Risk Surveillance
System, 2002
5 Tax and budget comparisons
are from the Texas Legislative Budget
Board, Fiscal Size-up, Texas State
Services, 2002-03 Biennium, January 2002.
Online at http://www.lbb.state.tx.us/Fiscal_Size-up/Fiscal_Size-up_2004-2005_1203.pdf.
Separately Settled Payments To Date:
$2,891,530,000 in calculated, estimated
payments have been paid to Texas as part of a
separate settlement agreement. The provisions of
that settlement were similar to those in
individual settlements previously reached with
the four states (Florida, Minnesota, Mississippi
and Texas) that did not participate in the Master
Settlement Agreement.
For more about Taxes paid by Texas smokers and
for the same breakdown on all 50 states, go to
http://www.smokersclubinc.com/modules.php?name=Encyclopedia&op=content&tid=56
|
