Reason.com - Free Minds and Free Markets
Reason logo Reason logo
  • Latest
  • Magazine
    • Current Issue
    • Archives
    • Subscribe
    • Crossword
  • Video
  • Podcasts
    • All Shows
    • The Reason Roundtable
    • The Reason Interview With Nick Gillespie
    • The Soho Forum Debates
    • Just Asking Questions
    • The Best of Reason Magazine
    • Why We Can't Have Nice Things
  • Volokh
  • Newsletters
  • Donate
    • Donate Online
    • Donate Crypto
    • Ways To Give To Reason Foundation
    • Torchbearer Society
    • Planned Giving
  • Subscribe
    • Reason Plus Subscription
    • Print Subscription
    • Gift Subscriptions
    • Subscriber Support

Login Form

Create new account
Forgot password

Policy

Should Smokers Keep SCHIP Afloat?

Jacob Sullum | 7.12.2007 7:21 AM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests

Congress seems set to approve legislation that would fund an expansion of the State Children's Health Insurance Program with a 61-cent-a-pack increase in the federal cigarette tax. President Bush has promised to veto the bill, which seems contrary to progressive principles as well as conservative anti-tax sentiment. Isn't the idea of a program aimed at helping people of modest means that it should be financed by people who are better off? As a group, smokers are less affluent than nonsmokers, and poor smokers spend a bigger chunk of their income on cigarettes than rich smokers do, facts that combine to make the cigarette tax highly regressive.

Even if smoking does not, on balance, save taxpayers money (which it probably does, once you take into account the savings from less health care in old age and fewer Social Security payments associated with smokers' shorter life spans), I've never seen any credible numbers suggesting that the current level of state and federal taxes fails to cover the external costs attributed to the habit. So higher cigarette taxes to pay for health care cannot reasonably be seen as a user fee or an insurance surcharge for people whose risks are higher. In any case, the smokers paying for SCHIP will not, by and large, be the children covered by it.

For a somewhat different perspective on the proposed tax hike, see anti-smoking activist Michael Siegel's comments. Siegel worries that tying SCHIP funding to cigarette tax revenue will discourage the federal government and the program's supporters from trying to reduce smoking rates.

Start your day with Reason. Get a daily brief of the most important stories and trends every weekday morning when you subscribe to Reason Roundup.

This field is for validation purposes and should be left unchanged.

NEXT: Just How Much Happier Could You Be Anyway?

Jacob Sullum is a senior editor at Reason.

PolicyEconomicsNanny StateTaxesTobacco
Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests

Show Comments (10)

Latest

How Trump's Tariffs and Immigration Policies Could Make Housing Even More Expensive

M. Nolan Gray | From the July 2025 issue

Photo: Dire Wolf De-extinction

Ronald Bailey | From the July 2025 issue

How Making GLP-1s Available Over the Counter Can Unlock Their Full Potential

Jeffrey A. Singer | From the June 2025 issue

Bob Menendez Does Not Deserve a Pardon

Billy Binion | 5.30.2025 5:25 PM

12-Year-Old Tennessee Boy Arrested for Instagram Post Says He Was Trying To Warn Students of a School Shooting

Autumn Billings | 5.30.2025 5:12 PM

Recommended

  • About
  • Browse Topics
  • Events
  • Staff
  • Jobs
  • Donate
  • Advertise
  • Subscribe
  • Contact
  • Media
  • Shop
  • Amazon
Reason Facebook@reason on XReason InstagramReason TikTokReason YoutubeApple PodcastsReason on FlipboardReason RSS

© 2024 Reason Foundation | Accessibility | Privacy Policy | Terms Of Use

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

r

Do you care about free minds and free markets? Sign up to get the biggest stories from Reason in your inbox every afternoon.

This field is for validation purposes and should be left unchanged.

This modal will close in 10

Reason Plus

Special Offer!

  • Full digital edition access
  • No ads
  • Commenting privileges

Just $25 per year

Join Today!