Michigan ranks 42nd in latest study

The Campaign for Tobacco Free Kids issued a press release indicating that Michigan ranks 42nd in the nation in funding programs to prevent kids from smoking and help smokers quit.

This news is sad but unsurprising given the fact that the state spends a measly 2.1% of the CDC recommended funding level. Although the state took a step in the right direction when it passed the smoke free law last December, it has failed to adequately provide fund tobacco dependence treatment programs that would help smokers quit. It has also continued its pattern of drastically underfunding prevention measures, thereby contributing to the increase in tobacco use among high schoolers.

This trend of increased use and decreased funding can be reversed. Shifting the Other Tobacco Products (OTP) tax rate to a price-based model on par with the cigarette tax would generate over $40 million for the state and would yield a 24% decrease in youth OTP usage.

For more information on Michigan's OTP rates, please join us at a webinar tomorrow, Thursday, November 18th titled "Tobacco Tax Increases as a Strategy to Prevent and Eliminate Tobacco Use." The webinar begins at 11:00 a.m. and ends at 12:00 noon EST. Contact tobaccofreemi@aol.com for more information.

For more information on TFK's settlement reports, including the full report and state-specific information, can be obtained at www.tobaccofreekids.org/reports/settlements.

ACTION ALERT:

As you may know, Governor Granholm recently released her plan to balance the budget. Among her solutions to the multibillion dollar deficit were increasing the cigarette tax by twenty-five cents and doubling the Other Tobacco Products tax (64% of the wholesale price). Sadly, the Governor’s plan also included a $150-million cut to the Michigan Department of Community Health. (See Free Press article here)

It is important that key political leaders in the state executive and legislative branches hear from us over the next week as we convey the importance of allocating funding for tobacco prevention and cessation programs. The message is: “Raising the cigarette tax and the tax on other tobacco products is essential for saving lives and health care dollars.”

Please thank the Governor and Bob Emerson for proposing the tax increase and urge them to dedicate a portion of the revenue generated to helping people quit smoking and prevent kids from starting.

Governor Granholm: http://www.michigan.gov/gov/0,1607,7-168-21995---,00.html
Bob Emerson: EmersonB@michigan.gov

Please contact the House and Senate leadership, as well as their own legislators, with this additional message: “Raising the cigarette tax and the tax on other tobacco products is essential for saving lives and health care dollars. I urge you to dedicate a portion of the revenue generated to helping people quit smoking and to prevent kids from starting.”

Senator Bishop 517-373-2417; senmbishop@senate.michigan.gov
Find Your Senator: http://senate.mi.gov/
Representative Dillon 517-373-0857; andydillon@house.mi.gov
Find Your Representative: http://house.mi.gov/find_a_rep.asp

Due to the high volume of emails most legislators are receiving daily, it may be more effective to place a phone call.

Hey Convenience Store Lobby, don’t look now, but your pants are on fire

Last week the Michigan Petroleum Association and Michigan Association of Convenience Stores released an “Analysis of the Impact of an Increase in the Michigan Cigarette Excise Tax.” It is a “study” filled with incorrect data, out of date research, and numbers cooked up by tobacco funded statisticians. The point of the study was to demonstrate the regressive nature of tobacco taxes, but the researchers failed to extrapolate their data and thus their early arguments tend to focus on the benefits of a tobacco tax increase (like a $165.2 million increase in state revenues).

The researchers used quotes throughout the study to “prove” their points. Quotes from the Heartland Institute (a think tank funded, in part, by Phillip Morris) and Americans for Prosperity (a group that has been underwritten by tobacco companies) permeate the study, using the same type of “slippery slope” arguments made famous by Phillip Morris during the tobacco cases of the 1990s.

In addition some of the statistics used are wildly out of date. TFM counted fourteen errors on the “State Excise Tax Rates and Tax Revenues Sheet” cited in the study. The actual tobacco tax rates varied between $0.07 and $1.00 over what was listed. The study’s claim that Michigan has the sixth highest tax rate is off by four positions and Wisconsin’s cigarette tax rate will exceed Michigan’s by $0.52 on September 1.

Here are the study’s main arguments and faults:

Argument: Cigarette excise taxes are an unreliable, declining, and unstable funding source.
o The Truth: States that have raised their cigarette tax rates have subsequently received more tax revenue than they would have received without a rate increase, despite the fact that cigarette tax increases reduce state smoking levels and despite any related increases in cigarette smuggling or tax evasion. Higher revenues obtained by cigarette tax increases will decline over time as smoking rates continue to go down, but the revenue changes will be gradual and predictable. Moreover, cigarette and overall tobacco tax revenues are more predictable and stable than state income tax or corporate tax revenues, which can decline sharply during recessionary periods.

Argument: Michigan smokers will turn to border sales, Indian reservations, the internet, and counterfeit smuggling operations.
o The Truth: Smuggling and tax evasion account for only a relatively small minority of cigarette sales and do not come close to eliminating revenue gains or making tax increases unproductive.

Argument: A 25-cent increase in Michigan's current cigarette excise tax of $2 will likely result in huge losses to Michigan’s Convenience Store profits.
o The Truth: When c-store owners were asked how their cigarette trends have been relative to excise tax increases, “90% said in line or better than they expected…” Since the federal excise tax increase, industry profits have actually grown for tobacco companies. Reynolds reported an 8.2% increase, Altria reported a 3.8% increase, and Lorillard’s profits increased 21.4%. Consumers didn’t stop consuming, they just switched brands, reported UBS tobacco analyst Nik Modi. Moreover, money spent currently on cigarette sales will not disappear when the smoking declines from a cigarette tax increase reduces cigarette sales, it will simply shift to consumer expenditures on other alternatives.

Argument: Cigarette excise taxes target low-income consumers and are regressive.
o The Truth: Higher smoking rates among lower-income groups means they are now suffering the most from smoking and will, consequently benefit the most from any effective new measures to reduce smoking, including tobacco tax increases. Low-income smokers are much more likely to quit because of state tobacco tax increases than higher-income smokers.

Therefore any state that significantly increases its cigarette tax rate will also end up increasing the portion of the state’s total cigarette tax revenues that are paid for by higher-income smokers and reduce the portion paid by lower-income smokers. It’s also important to note that cigarette companies (and the convenience store lobby) have no problem with levying new charges on low-income smokers when it increases their own profits.

Michigan’s economy is in dire straits. We need a win and tobacco tax increases are that win. The Governor’s proposed tax increase is a win for health, a win for the state budget, and a win with the public. The tax increase would result in reduced youth tobacco use, generation of over $150 Million in new state revenue, and is overwhelmingly supported by Republicans, Democrats, and Independents alike.

Top 10 Reasons Andy Dillon Should Bring Up the Smoke Free Bill…Again

Nearly a month ago, the House voted on HB 4377 which would make Michigan workplaces smoke free but exempted casinos, cigar bars, and tobacco shops. Speaker Andy Dillon (D-Redford) had reportedly told his caucus members that he would allow a vote on a clean bill without exemptions, but when those amendments came up (respectively brought by Rep. Joan Bauer (D-Lansing) and Rep. Paul Scott (R-Grand Haven)), they were quickly gaveled down and no votes were taken. Dillon said he wanted to see what the Senate did with HB 4377.

Despite Senate Majority Leader Mike Bishop’s (R-Rochester) previous statements that he would only allow a vote on a clean bill, Dillon seemed optimistic that he could “work something out” between the chambers. However, Speaker Dillon also made some public statements to business owners as well as to members of his caucus that if the Senate failed to act on the smoke free workplaces issue that he would allow for a vote on a comprehensive bill.

As of this writing, twenty-nine full days have passed since the House sent HB 4377 over to the Senate. It’s time for Speaker Dillon to act by sending a comprehensive smoke free bill, such as Rep. Bauer’s HB 4341 or Rep. Scott’s HB 4099 to the floor for a vote.







Here are 10 reasons why Speaker Dillon should take up the smoke free workplaces bill:









10. Leadership. Dillon can take this opportunity to pass comprehensive legislation and become a leader and champion for the state’s public health, rather than being accused of “holding up” Michigan’s health by passing a bill the Senate leadership has refused to address. He can ">“take the lead” in creating public health reform that works.

9. Public Health. As someone who has said he is committed to public health, this would be a big victory for both Dillon and the State of Michigan. States that have gone smoke free report have reported near immediate drops in the heart attack rate. Long term benefits include further drops in heart attack, cancer, and asthma rates.

8. Poker and Politics. Senate Majority Leader Mike Bishop has wavered on the idea of even taking up the issue of smoke free air. Bishop has previously said, however, that he would consider allowing a vote on a comprehensive bill. If Speaker Dillon passed a comprehensive bill he would call Bishop’s bluff, leaving him no choice but to allow a vote on smoke free air. Smoke free air can be debated as a public health issue, not a political game.

7. The economy. Research shows that the new economy thrives in areas that provide access to a great quality of life. Quality of life factors can include health care, jobs, and working conditions. States with smoke free workplaces laws have reported less employee absenteeism due to smoking related illnesses and ailments (such as chest colds, bronchitis, asthma, etc). Employees in smoke free states also report a more pleasant working experience (as compared to pre-smoke free status). Employers also generally see a decrease in direct health care costs for insurance, as well as lower maintenance costs (since carpets, furniture, and equipment last longer in smoke free environments).

6. The economy. Michigan residents spend 1.1 billion Medicaid dollars on smoking related health care. Each Michigan resident spends at least $306 annually to address smoking related health care costs. In addition, the state loses $3.95 billion in production costs due to tobacco use.

5. Constituency. It is what the people want. Over 2/3 of Michigan voters have indicated that they support smoke free laws. Give the people what they want.

4. Bipartisan cooperation. During his Opening Day Remarks, Dillon said, “While we may never end the partisanship that has divided this Capitol in the past, we can focus our energies in areas where we share common ground.” The smoke free workplaces law epitomizes an area where there is common ground. Legislators on both sides of the aisle support comprehensive smoke free air, and Speaker Dillon would do well to unite the parties on this issue.

3. Integrity. If Speaker Dillon took a vote on comprehensive smoke free air, it would add to his reputation as a politician who keeps his word. Following the failed vote on HB 4163 last session, Dillon assured smoke free advocates that the issue would be taken up again during 2009. On opening day, he prioritized the smoke free air issue and challenged his colleagues to finish working on the issue.

2. Future prospects. Speaker Dillon is term limited in 2010. Following a long and successful political career in the House, it’s hard to imagine that either Dillon or his constituents want to see him go anywhere. In a run for Governor, Attorney General, or other office, having this law’s passage on his list of accomplishments will stand out. (See also Reasons 3-5).

1. This really is a life or death issue. The Surgeon General has concluded that there is NO safe level of secondhand smoke exposure. Following the implementation of smoke free laws, heart attack rates go down significantly. Within two months of going smoke free, states have reported 60% drops in complaints about respiratory difficulty (such as shortness of breath, asthma attacks, bronchitis, etc). Passing a smoke free workplaces law is an efficient, economical way to help our struggling public health system.

Michigan's people have waited for too long. The evidence is in, the support is overwhelming, the time is NOW.

Contact Speaker Dillon and ask him to do the right thing, keep his word, and call for a vote on comprehensive smoke free air.

CALL: 888-737-3455
FAX: 517-373-5976
EMAIL: andydillon@house.mi.gov
ADDRESS:
26284 Graham Rd.
Redford Township, MI 48239

CALL TO ACTION: Quit Playing Games With Our Hearts

An article in the Detroit Free Press talked about the rampant partisan politics and “excess gamesmanship” in Lansing. The author defined gamesmanship as “promoting the appearance of achieving policy objectives in such a way as to ensure no change will be accomplished, or with an indifference to actually accomplishing change.” He then went on to describe the Michigan politicos’ favorite gamesmanship target: the smoke free workplaces bill.

The author observed, “The end of the current Legislature may very well find us in the same position as the end of the last Legislature: preservation of the status quo. This would amount to a triumph of gamesmanship over democratic majorities.”

Despite Michiganders’ overwhelming support of a comprehensive bill, the legislators just can’t seem to get their act together enough to give the constituents what they want. Last year, the Senate passed a clean bill, and the House passed a bill riddled with exemptions. The two groups pointed fingers at each other and Michigan residents paid the price for their silly games. This year, the politicos’ “go to” move is to blame the economy.

So how do you beat cheaters at their own game? Call their bluff. Public health is not a game. Michigan residents cannot stand idly by while Ashtray Andy and Marlboro Mike drag their feet and wait for our fearless leaders to learn how to walk and chew gum at the same time.

If they want to talk about the economy, then let’s look at the dollars and cents facts. Just about every peer reviewed economic impact study shows no negative impact on business. To the contrary, most states report a marked uptick in restaurant revenue due in large part to more people going out. These reviews have been conducted in good times and bad, in poverty and in wealth.

As for the price Michigan pays as a smoke-friendly state, the numbers are astronomical. In 2007, Michigan spent $3.4 billion on health care costs directly related to smoking. Our state Medicaid program covers $1.1 billion of that amount. That means that each Michigan resident has to shell out roughly $306 to cover smoking related health care costs. In tough economic times like these, imagine what you could do with $306:

You could buy a week’s worth of groceries for a family of four,

Or 153 gallons of gas:

Or a car payment:

Or, for those of you looking for a splurge, a Nintendo Wii:

What would you do with $306? Call Andy Dillon or Mike Bishop and let them know that in these hard times, Michigan can't afford to ignore its health.

Dillon can be reached at (888) 737-3455 or andydillon@house.mi.gov

Bishop can be reached at (877) 924-7467 or senmbishop@senate.michigan.gov