Fewer smoke, revenue grows after state cigarette tax hike

By Tony Manolatos / The Detroit News

Fewer Michiganians are lighting up, but the state is making more money in cigarette revenue thanks to a 2004 tax increase.

Facing a budget shortfall, the state raised the levy to $2 a pack in July, up from $1.25. Only smokers in two states are taxed more: Rhode Island ($2.46) and New Jersey ($2.40).

Michigan's increase taxed some smokers out of the market. Others, tired of paying $5 a pack, swear they're just days from quitting.

"It's too expensive," said Marc Woita, 34, of Rochester Hills, who plans to quit for good during Lent, which begins this month. "The state can get their money from somebody else."

In 2004, there were 681 million packs of cigarettes sold in Michigan, down from 705 million in 2003, according to the Michigan Department of Treasury. Still, thanks to the tax hike, Michigan collected $993 million in tobacco tax revenues in 2004, compared to $892 million in 2003.

There are no plans to lower the tax, used primarily to help fund public education and Medicaid. The state predicted that about 15 percent of smokers would quit when it increased the tax. In fact, in announcing the increase, the state issued smokers a challenge.

"We said, 'If you don't like the tax, we think you should punish us. Stop smoking and have us find a different way to balance the budget,'." said T.J. Bucholz, spokesman for the Michigan Department of Community Health.

Last week, Kalamazoo Valley Community College said it would no longer hire smokers, Bucholz said.

And four workers at an Okemos-based company, which bans its workers from smoking because of health care costs, quit recently after refusing to take a test to determine if they smoke.

"The costs to treat smoking are astronomical," Bucholz said. "People wonder why their health care costs and health care premiums increase every year. It's simply the cause of chronic diseases - often times caused or exacerbated by smoking - that we end up paying for."

More smokers are trying to quit, if calls to the state's Tobacco Quit Line are an indication. From July through December 2004, there were 3,100 calls for assistance, Bucholz said.

From January through June 2004, there were 550 calls.

In the short-term, raising taxes helps, but most smokers who quit will relapse because they're addicted, said Craig Nabat, president of Freedom Laser Therapy Inc. The Royal Oak clinic uses laser therapy to break the addiction.

"There's 4,700 toxins in a single cigarette, and 60 of them are proven to cause cancer," said Nabat, who opened his clinic in November, the only one of its kind in Michigan. "Bottom line, this stuff is going to kill you. The only reason people are still smoking is because they're addicted."

Seventy percent of smokers want to quit but can't, said Nabat, a former smoker who kicked the habit with laser therapy in California, a procedure available in Europe and Canada for decades. Freedom Laser serves about 150 clients a month.

The lasers stimulate energy points on the hands, face and ears, giving people an endorphin rush, which alleviates most of their withdrawal symptoms, Nabat said.

The worked for Cheryl and Greg Mathe of Berkley

"It's phenomenal," said Cheryl Mathe, 54, who smoked a pack a day for 35 years until quitting last month. "Greg and I were concerned about our health. That was the main reason, but the second biggest reason was financial. Paying $5 a day - times 2 - that's a lot of money."

Tips for quitting

Michigan's Tobacco Quit Line, (800) 480-7848, offers free advice and tips on quitting. The line is available from 8 a.m. to 8 p.m. Monday through Friday.

-------

Image
Brandy Baker / The Detroit News

Freedom Laser Therapy Inc. President Craig Nabat, right, performs the low-level laser technique on Richard Knapp.

Richard Knapp gets a shot of low-level laser therapy at Freedom Laser Therapy Inc. in Royal Oak. The low-level therapy, based on the principals of acupuncture, helps smokers quit with just a one-time, 30-minute session. Knapp has smoked for 40 years. Some employers join the anti-tobacco bandwagon and ban hiring costly smokers.