Big Tobacco and politicians are one of Missouri’s most enduring love stories

When I was 12 years old in 1966, my father died of a heart attack caused by cigarette smoking. He was 43 and left behind my mother and five children. Fortunately, since 1966, thanks to strong actions taken by the federal and many state governments, smoking and smoking-induced disease and deaths have declined substantially.

Sad to say, however, there is one state where progress in this area has been painfully slow, and this would be Missouri. At 17 cents per pack, the Missouri cigarette tax is easily the lowest in the nation — less than 10% of the national state average of $1.76 per pack. In addition, despite receiving about $2.9 billion in payments since 2001 from a lawsuit against the major tobacco companies, Missouri spends almost nothing on tobacco control.

As Missouri has no significant stake in the tobacco and cigarette industry, one might wonder why. The answer is surprisingly simple: In Missouri, nearly all prominent politicians accept campaign cash from tobacco producers and retailers. Unfortunately, at the top of this list we find Gov. Mike Parson, who has accepted about $179,000 of these contributions during his career. In a distant but still strong second place, we find Attorney General Eric Schmitt at around $109,000.

The Missouri Senate has 34 members. Led by state Sens. Bob Onder ($35,950) and Jamilah Nasheed ($35,200), we find that 33 of the 34 accept money from tobacco interests. Closer to home, Kansas City-area state Sens. Mike Cierpiot and Tony Luetkemeyer have accepted $30,750 and $12,020 respectively in tobacco money during their careers.

The facts:

▪  Over the last 10 years, the adult smoking rate in Missouri has averaged 22.8%, the eighth-highest in the nation.

▪  In 2016, the Missouri lung cancer death rate was 48 per 100,000 people, the ninth-highest in the nation.

▪  In 2016, the Missouri heart disease death rate was 192.1 per 100,000 people, also ninth-highest in the nation.

Note that in Missouri, nearly twice as many women die from lung cancer (31,702 since 2000) versus breast cancer (16,786 since 2000).

Equally disheartening is the fact Missouri is making no progress in reducing smoking-induced deaths. The death toll from smoking has averaged more than 11,000 per year since the start of the 21st century.

A primary tool at the disposal of the governor and legislature is the cigarette tax. Increasing that tax would raise cigarette prices, which would then deter smoking (particularly among teenagers). It would also provide revenue for tobacco control and other needed services.

In addition to being lowest in the nation, the Missouri cigarette tax is substantially below that of our primary bordering states. Kansas’ is $1.29 per pack. Even major tobacco producer Kentucky is $1.10 per pack. Think tax rates only increase? The Missouri cigarette tax began in 1956 at 2 cents per pack. But adjusted for inflation, it is now 1.8 cents per pack — the all-time low.

Perhaps the most ill-informed and tiresome argument made by tobacco proponents goes something like, “The government really wants you to smoke because it is addicted to the revenue that cigarette taxes generate.” In 2019, the Missouri tax on tobacco products yielded $94.8 million, accounting for 0.5% of the state operating budget, excluding federal funds. Furthermore, I estimate that in 2019, the Missouri Medicaid program spent $296 million of state money to treat smoking-related illness, versus the $73 million the cigarette tax generates. Smoking is a net drain to the state treasury.

The governor and General Assembly have the power to enact major improvements on this front without radical policy changes. Under the Hancock Amendment, they may increase revenues by about $110 million annually without a public vote. If you prefer a state that prioritizes public health over tobacco profits, let’s suggest Parson and the legislature support:

▪  Increasing the cigarette tax by about 20 cents a year until an appropriate level is reached. Each 20-cent increase would generate $85 million in additional revenue and would not violate the Hancock Amendment. For instance, a Missouri cigarette tax of $1.00 would increase revenues by $350 million a year, remaining well below the national average and below our main neighboring states.

▪  Enact legislation that would maximize revenues from the 1998 tobacco Master Settlement Agreement lawsuit and allocate a greater share to tobacco control efforts and to address the growing vaping problem.

Missouri’s tobacco control efforts have been abysmal. Although the Christmas season has passed, let us remember that it is ultimately about redemption. I remind our elected officials who can solve this problem that Ebenezer Scrooge was much happier after his visit from the ghosts of Christmas.

Tom Kruckemeyer served as chief economist for the Missouri Division of Budget and Planning from 1978 to 2004. This commentary is based on a study published at his website tomkmotobaccoreport.com.

This story was originally published February 17, 2020 at 5:00 AM with the headline "Big Tobacco and politicians are one of Missouri’s most enduring love stories."