Guest Author
Cigarette smoking is the leading cause of preventable disease and death nationwide. Annually, over 32,000 Floridians die from smoking tobacco products. This surpasses the combined mortality rate from automobile accidents, illegal drugs, alcohol abuse, murders and suicides. Despite these risks, an estimated 2 million Floridians continue to smoke tobacco products.
Smoking tobacco is not only deadly, but it is also costly. In Florida alone, health care costs directly related to smoking exceed $10 billion annually. About $1.62 billion of the cost is paid for with taxpayer dollars in the form of Medicaid. To cover the costs of smoking-caused government expenditures, Florida taxpayers pay approximately $840 per household.
Lawmakers — from Tallahassee to Washington, D.C. — should assist individuals in the transition away from cigarettes and toward less harmful alternatives, including heated tobacco products (HTPs). Unlike traditional cigarettes, HTPs do not burn tobacco. Rather, HTPs heat a small amount of tobacco just below the point of combustion, creating an aerosol of nicotine without the smoke. According to the U.S. Food and Drug Administration (FDA), the production of harmful and potentially harmful chemicals is significantly reduced when there is no combustion. Although the health risks are not eliminated, scientific studies show an average 90 to 99% decrease in harmful and potentially harmful constituents, suggesting a complete transition from cigarettes to HTPs would improve the health of tobacco users and reduce societal costs.
The FDA currently recognizes a risk continuum for tobacco products, with cigarettes representing the highest risk. Florida Senate Bill 1418 and House Bill 785 propose excluding heated tobacco products (HTPs) from the statutory definition of “cigarette,” recognizing that non-combustible HTPs warrant different tax treatment than more harmful cigarettes. This judicious approach could mitigate the harms associated with tobacco use and improve public health. HTPs may represent a less harmful alternative, but their market penetration hinges on legislative classification and taxation of these novel products.
Introducing HTPs into the U.S. market and providing incentives in the form of lower taxes compared to those of cigarettes can go a long way toward reducing cigarette use. In Japan, for example, cigarette sales dropped more than 50% during the first 10 years after HTPs were introduced. With the right tax structure and policies, these products could have a similar impact in the U.S.
Florida legislators should seize the opportunity to help more Floridians transition away from cigarettes and toward less harmful forms of tobacco. By implementing a risk-based tax policy for tobacco products, lawmakers can incentivize more adults who smoke tobacco to make the switch to these lower-risk alternatives. Not only would this improve and promote public health for generations to come, but it would also best serve Florida taxpayers by reducing the cost of long-term health care and improving health outcomes for smokers.
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Dominic M. Calabro is president and CEO of Florida TaxWatch.
