Though some smokers may be grumbling about last week’s increase in federal tobacco taxes, their cigarette money will help fund children’s health insurance nationally.
The tax increase is $0.62, raising the tax from $0.39 to $1.01 per pack of cigarettes.
Arizona taxes are an additional $2, said Meagan Dorsch, the media and public affairs manager for the National Conference of State Legislatures, a bipartisan organization.
The actual price of many cigarettes rose recently as well because of the expected drop in sales from the tax increase, she added.
President Barack Obama said in a news release that the bill he signed, the Children’s Health Insurance Program Reauthorization Act of 2009, would continue to cover
7 million children and an additional 4 million, as well as allow immigrant children to be covered.
“We fulfill one of the highest responsibilities we have: to ensure the health and wellbeing of our nation’s children,” he said.
Although the new tax increase is supposed to help more children get health insurance, there are some requirements that each state program must meet.
Monica Coury, the assistant director of the Office of Intergovernmental Relations for the Arizona Health Care Cost Containment System, affiliated with KidsCare, the Children’s Health Insurance Program in Arizona, said the bill provides some opportunities, but Arizona can’t provide funds for the federal government to match.
“It’s unclear whether Arizona will even be able to take advantage of some of the expansion,” Coury said.
Because of the state’s budget problems, she said the CHIP program would be unlikely to expand and might even be cut in Arizona.
Brittany Lamb, a first-year law student, said she has had to search around for cheaper cigarette prices since the tax increase.
“I definitely am going to be smoking a little less frequently now,” she said.
Stores that sell tobacco products are being affected somewhat by the tax increase.
“I’d say [sales are] about the same, [but] it’s decreased a little bit for sure,” said Jessica Balestrieri, an employee at Tobacco and Pipes Plus, located on University Drive near Loop 101.
Balestrieri said the store has encouraged people to buy bulk tobacco products to make their own cigarettes because it’s cheaper.
Richard Cauchi, the health program director at the National Conference of State Legislatures, said the tax increase helps states financially during the economic crunch and gives money to help children’s health insurance programs.
“States have had tobacco taxes over the years. … At the same time, policymakers see it as a way to discourage smoking,” Cauchi said.
Reach the reporter at reweaver@asu.edu.


