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Would A Cigarette Tax Reduce State Deficit?

smoking 385 Would A Cigarette Tax Reduce State Deficit?

The American Society Cancer Action Network is saying that implementing a health impact fee on tobacco products sold in Nevada would save the state more than a half a billion dollars in tobacco-related health care costa over time while significantly helping to reduce the state’s budget deficit.

Currently, Nevada spends $565 million on tobacco-related health care costs, $123 million of which is paid by the state through the Medicaid program. Dr. Frank J. Chaloupka, a professor of economics at the University of Illinois estimates that a decline of just one percentage point in adult smoking rates will save the state $186 million in healthcare costs, including 22.3 million in state Medicaid costs over time.

To learn more about this study, KXNT Morning News spoke to Tom McCoy, the Nevada Government Relations Director for the American Cancer Society Cancer Action Network.


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