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2 <br />Cigarette companies argue that cigarette tax increases are regressive taxes that fall <br />disproportionately hard on lower- income persons. Research has shown that smokers with <br />family incomes at or below the national median are four times as likely to quit because cigarette <br />price increases as those with higher incomes. Those that quit because of the tax increase will <br />actually end up saving all the money they used to spend on cigarettes. The resultant health <br />benefits will also end up saving money in health care costs for families. <br />According to the Campaign for Tobacco -Free Kids, smoking in North Carolina is responsible for <br />only a tiny fraction of the overall demand for the burley and flue -cured cigarette tobacco grown <br />in North Carolina or elsewhere in the US. Even if all cigarette sales in the State were totally <br />eliminated, that would reduce the total annual sales of American -grown burley and flue -cured <br />leaf by less than two percent. It is estimated that an increase of 50 cents per pack would <br />reduce the overall demand by only a bit more than one -tenth of one percent. <br />FINANCIAL IMPACT: None for the County directly. The tax increase on cigarettes would <br />enable more revenue to be used at the State level for various programs that the State <br />designates as high priority. More revenue may result in fewer state budget cuts to local entities. <br />This resolution asks for the revenue to be used for health programs or for programs that <br />reduce or prevent tobacco use. <br />RECOMMENDATION(S): The Manager recommends that the Board consider adopting the <br />resolution and forwarding it to Orange County's legislative delegation and the North Carolina <br />General Assembly. <br />