California is currently squaring up against the tobacco industry. Last month, Governor Jerry Brown signed a bill that raised the legal smoking age from 18 to 21. His state government is also in the process of banning all smoking at parks and beaches, citing the related health and wildfire risks. But perhaps more importantly, the state has a qualified initiative that would potentially raise the tobacco tax in California by $2 a pack, a tax that would include vaping and e-cigarettes.

At the moment, California ranks 36th in the US for tobacco tax at 87 cents (New York has the highest rate at $4.35, Missouri has the lowest at 17 cents, and the national average is $1.61). The state’s tobacco tax has not risen since 1998. It is not for lack of trying though as California constantly tries to get initiatives to ballots.

Formidable opponent

 

The tobacco industry is no sleeping giant, putting millions of dollars into political campaigns committees since 2013. It is one of the largest outside entities influencing California politics. Big tobacco effectively shut down California Prop 29 in 2012, which proposed a $1 raise of tax on tobacco, by the slimmest of margins.

There has been a huge change in trends in the past 30 years. About 25% of Californians would consider themselves cigarette smokers, while that number has dropped to just over 11% in the recent years. This may be attributed to the ban on smoking in bars, restaurants, and workplaces, as well as a decline of tobacco marketing.

Extra tax revenue

 

As of now, tax revenue on tobacco is mostly used for Family and children care as well as tobacco use prevention. The new revenue from taxes would be primarily used to fund Medi-Cal coverage and tobacco-related treatment and prevention programs.

This new tax would benefit California greatly as most residents agree, but the major problem is the politics behind the opposition. This vote is slated for November.