Tobacco loophole in child health law costs $250M

WASHINGTON — A tobacco tax loophole in President Barack Obama's children's health insurance program cost the government more than $250 million in its first year, public health officials say.

The loophole allowed companies to avoid huge tax increases on loose rolling tobacco by relabeling their product as pipe tobacco. The simple marketing twist lets companies pay $2.83 per pound, rather than the $24.78 per pound levied on rolling tobacco.

That proved an expensive technicality in the way the government pays for health insurance for poor children. Almost immediately, tobacco companies ramped up production of pipe tobacco to record levels and curtailed production of roll-your-own tobacco.

Daniel Morris, who tracks tobacco production data at the Oregon Department of Health, first identified the loophole late last year. In November, The Associated Press highlighted the millions being lost, but it was unclear at the time whether that represented a short-term change in production or a long-term trend.

The trend has not changed. In March, the one-year anniversary of the tax change, companies produced more than 2 million pounds of pipe tobacco. It was a record month for an industry that steadily produced about 270,000 pounds a month before the tax changed.

In a memo to colleagues last week, Morris estimated the U.S. lost more than $250 million in tax revenue in the first year of the law. States are losing money, too, because many base their taxes for roll-your-own and pipe tobacco on the wholesale price, which includes federal taxes.

"The magnitude was larger than I initially expected," Morris said. "I was expecting that once the loophole was identified, there'd be action to fix it."

Such action has stalled. The Obama administration said last year it would release new rules for differentiating roll-your-own tobacco from pipe tobacco, but it has yet to do so.

"We're still studying, from a technical standpoint, how to distinguish between the two products," said Arthur Resnick, a spokesman for the Alcohol and Tobacco Tax and Trade Bureau.

And on Capitol Hill, a bill to raise taxes on pipe tobacco to the same level as loose tobacco has yet to be debated.

"With the money we're losing, the deficits we have and the priority this administration and Congress have put on health care, to not find that revenue is just wrong," said Rep. Steve Cohen, D-Tenn., who wrote the bill to close the loophole.

Pipe tobacco is normally too coarse and moist to roll into a cigarette, but nothing says it has to be. The administration says the only distinction between pipe tobacco and roll-your-own tobacco is how it's labeled.

Norman Sharp of the Washington-based Pipe Tobacco Council said the small, legitimate pipe industry supports regulations distinguishing between traditional pipe tobacco and roll-your-own tobacco, which he said is being mislabeled.

"It's not really a loophole. It's fraud," Sharp said.

Morris said pipe tobacco production, and the lost revenues that go with it, could climb even higher because of a similar technicality in another law. In trying to crack down on tobacco smuggling, lawmakers prohibited shipping cigarettes and roll-your-own tobacco through the mail.

But the law didn't say anything about shipping pipe tobacco.

‘No Tobacco Day’ sends message to youth

Health officials yesterday urged youths, especially females, to be wary of the harmful effects of smoking and tobacco use on their health and that of the community at large.

They were taking part in a one-day public seminar to mark the ‘World No Tobacco Day’ organised by the Supreme Council of Health’s Anti-Smoking Campaign Committee with a slogan: “Boys and Girls For Change: Tobacco Control Now”.
Observed around the world every year on May 31, ‘World No Tobacco Day’ is meant to encourage a 24-hour period of abstinence from all forms of tobacco consumption across the globe.

The day is also to draw global attention to the widespread prevalence of tobacco use and to negative health effects, which currently lead to 5.4mn deaths worldwide annually.

The World Health Organisation’s theme for the year is “Gender and Tobacco with an emphasis on marketing to women”.

Making a speech on behalf of the HE Minister of Public Health and SCH Secretary General, Abdullah bin Khalid al-Qahtani, assistant minister for Medical Affairs at the SCH, Dr Saleh al-Merri said that since July 2002, Qatar has adopted several important measures to prevent the use of tobacco and all its derivatives.

These include strict vigilance on the age of those buying tobacco products, banning of its sale to school-going students and penal action against those who violate the rules on smoking areas in public places and buildings.

He said the ministry has launched a large scale campaign against tobacco by publishing several leaflets and booklets highlighting the harmful effects of tobacco and its derivatives.

“One billion cigarettes are smoked a year in Qatar and while 40% of the smokers are adult, 22% are teenagers and the country’s smoking rates were found to be double of those in Europe,” he pointed out.

The official said that Qatar has spent more than $150mn a year on treating smoking-related diseases. “We have set up special smoking cessation clinics in Hamad Hospital and Al Khor Hospital and we have plans of opening three more to provide services on how to quit smoking to people,” he mentioned.

He mentioned that the country will also ensure that at least 30% of the cigarettes package shows dangers of tobacco.

Public Health department director Dr Mohamed al-Thani highlighted that every six seconds, one person dies because of smoking and one among every 10 adults dies due to smoking.

“Qatar has taken stringent measures to combat smoking and the use of tobacco and its derivatives,” he mentioned.

WHO regional office consultant Dr Ibrahim Kalatani urged youths to be ambassador for change by abstaining from smoking saying that minors and women were becoming more exposed to tobacco products both at home and in the public arena.

“The harmful effects of tobacco is not limited to cigarettes only but other products such as Shesha is also very dangerous to health and the unfortunate thing is many non-smokers are falling victims of passive smoking as they are being forced to inhale 4,000 chemical substances against their will,” he said.

Highlights of the event were exhibition of different smoking cessation techniques, distribution of information pamphlets and showcasing of prize winning entries of inter-school painting competition organised for students by Anti-Smoking Society Qatar.

Short documentary films packaged by the WHO were also featured during the event.

Young Indian women falling victim to tobacco?

Did you know that 8.3 percent of Indian girls between 13-15 years of age consume some form of tobacco? The statistic acquires significance as World No Tobacco Day is observed Monday with an emphasis on the marketing of tobacco to women.

“Adolescent girls are a major target of opportunity for the tobacco industry, they are trying to hook young girls through advertisements,” Bhavna Mukhopadhayay, executive director of the NGO Voluntary Health Association of India (VHAI), told IANS.

“Some advertisements on TV bring back well known cigarette brands and certain advertisements in magazines inform that girls who smoke can become slim and glamourous.”

May 31 is marked by the World Health Organisation as World No Tobacco Day and this year’s theme is “Gender and tobacco with an emphasis on marketing to women”.

In India, the sale of cigarettes and other tobacco products to youngsters below 18 is banned. But the Global Youth Tobacco Survey (GYTS) 2009 for India found that 8.3 percent of girls in the 13-15 age group consume some form of tobacco. Around 2.4 percent of the girls consume cigarettes and 7.2 percent consume other tobacco products.

A new WHO report, “Women and Health: Today’s Evidence, Tomorrow’s Agenda”, says tobacco advertising is increasingly targeting girls.

Data from 151 countries reveals that around seven percent of adolescent girls smoke cigarettes as opposed to 12 percent adolescent boys. In some countries, the number of girls who smoke cigarettes equals that of boys.

Many girls in Indian cities who smoke consider it “cool”. Working women cite peer pressure, stress at home and workplace and odd working hours as reasons. Several girls aged between 15 and 20 frequent hookah bars for fun and “relaxation”.

Although owners of hookah bars vehemently deny breaking the law, youngsters can be seen puffing away inside.

“Around 10 popular hookah bars function in Delhi alone and many ask their customers for age proof,” said Ashok Srivatsav, a hookah manufacturer.

But Komal Sharma, 15, a frequent visitor to hookah bars in Delhi, said: “I often go with friends to a hookah bar in Vasant Vihar but no one asks me for any ID proof.”

Gynaecologists point out that diseases such as chronic bronchitis and even cancer of urinary bladder or stomach can be caused by smoking hookahs.

Admits a staffer at a hookah bar, “Flavoured hookahs definitely contain nicotine and many youngsters initiate the smoking habit with it. Schoolchildren, particularly girls, frequent these places.”

As per the National Family Health Survey (NFHS), over 54 million women use some form of tobacco. Apart from smoking, women in India, particularly from rural areas, use smokeless tobacco like gutka, paan masala with tobacco, mishri and gul.

Many unwittingly become tobacco victims.

“While many girls use tobacco as a fad or for relaxation, many rural women work as beedi rollers for hours and suffer from tobacco related diseases,” said Ms. Mukhopadhayay.

“Approximately, there are over four million women beedi rollers and two million tendu leaf pluckers in India. Handling and inhaling tobacco dust and volatile components of tobacco puts them at a high risk of cancer, chronic lung diseases, tuberculosis, asthma and adverse gynaecological problems,” she added.

Margaret Chan, director general of WHO, commenting on the report, said: “Protecting and promoting the health of women is crucial to health and development - not only for the citizens of today but also for those of future generations.”

Smoking Amongst Teenagers

Teenage smoking is a big cause for concern today. The majority of adult smokers are said to start smoking as teenagers. Eventually they get hooked to smoking for life. Smoking is said to be the leading cause of preventable deaths. Every year millions of people die across the world because of a smoking related condition such as heart disease, lung ailment or cancer caused by smoking. Health experts want to curb smoking amongst teenagers but are finding it tough to do so. In spite of imposing bans on tobacco advertising and applying a ban on smoking in public places, there is no significant decrease in the number of teenagers who smoke.

Peer pressure is said to be the biggest reasons why teenagers get attracted towards smoking. Just because their friends are able to hold a cigarette and smoke like adults do, they too take up the habit. Initially, things appear to be in their control. They enjoy the thrill of participating in a forbidden activity. However, it soon becomes a habit and they find it difficult to get over their addiction.

The other factor that attracts teenagers towards smoking is the fact that media has glamorized cigarette smoking. Teenagers want to emulate their favorite stars and smoke in their style. Besides, children who see their parents and elder siblings smoking are more likely to start smoking early.

Health experts believe that strong steps should be taken to curtail the habit of smoking amongst teenagers. Parents and teachers must inform young boys and girls about the harmful effects of cigarettes. Children must be informed that smoking may initially appear to be pleasurable and glamorous but it is actually not so. If you notice a tendency for smoking amongst your teenage kids or siblings, you can even take them to a counselor so that they are able to better understand the repercussions of smoking at an early age.

For those who have unfortunately become addicted to smoking need not feel defeated. Though not so easy, smoking cessation is very much possible in spite of the number of years you have been smoking and the number of cigarettes you have been smoking in a day. Thanks to the advancements in medical science, there are effective smoking cessation aids available today.

Study Finds New Hazard in Third-Hand Smoke

Most people take the dangers of smoking and second-hand smoke seriously, but a study published in the January 2009 edition of Pediatrics shows this is not enough. A newly discovered hazard, labeled "third-hand smoke," poses considerable risk, even more so because it is not always obvious.

A cigarette in the hand or a room full of smoke is conspicuous and easy to avoid. But what about after the cigarette's been put out and the smoke disappears? Doctors from MassGeneral Hospital for Children in Boston say the dangerous toxins are still present, even if they are no longer visible. Smoke from tobacco products leaves a residue behind which exposes you to carcinogens, heavy metals and radioactive materials.

Dr. Jonathan P. Winickoff, the lead author of the study and an assistant professor of pediatrics at Harvard Medical School, explains: "Third-hand smoke is the tobacco smoke contamination that remains after the cigarette is extinguished. It's the toxic layer that is deposited on every surface indoors where a smoker lights up: in cars, on smokers' clothing and hair."

In the study, researchers surveyed 1,500 households in the United States to determine if people were aware of the hazards of third-hand smoke. Most smokers and nonsmokers agreed that second-hand smoke was an obvious danger. However, only 65 percent of nonsmokers and 43 percent of smokers thought third-hand smoke was hazardous to children. Most people, and especially those who smoke, simply aren't aware of the risks of third-hand smoke.

"When their kids are out of the house, they might smoke," says Dr. Winickoff. "Or they smoke in the car. Or they strap the kid in the car seat in the back and crack the window and smoke, and they think it's okay because the second-hand smoke isn't getting to their kids."

He points out you can smell tobacco smoke on someone after they've been smoking or in a room where people have smoked. "Your nose isn't lying," he said. "The stuff is so toxic that your brain is telling you, 'Get away.'"Dr. Philip Landrigan is a pediatrician who heads the Children's Environmental Health Center at Mount Sinai School of Medicine in New York. He thinks the term "third-hand smoke" is right on the money.

"The central message here is that simply closing the kitchen door to take a smoke is not protecting the kids from the effects of that smoke," he said. "There are carcinogens in this third-hand smoke, and they are a cancer risk for anybody of any age who comes into contact with them."

Of course, if you're an adult you can choose to remove yourself from any situation which exposes you to third-hand smoke. For children, whose developing brains and bodies are highly susceptible to the harmful toxins in smoking tobacco, the choice is not always in their hands. It's up to adults to take responsibility for our children's health by preventing them from being exposed to these toxic substances.

Youth group goes downtown to discourage smoking

Willie Pappas doesn’t smoke and he doesn’t want anyone else to use tobacco. Pappas is a member of the Local Youth Leadership Club, whose members were on Adamson Square in Carrollton Wednesday afternoon trying to get their message out.

“A lot of these cigarette companies are trying to get the kids smoking cigarettes, so we’re out here trying to tell people what’s in cigarettes,” said Pappas as he and other club members held anti-smoking signs and passed out pamphlets to passersby describing the harmful chemicals in cigarettes. “People need to know what the kids are smoking and what their kids are smoking, and maybe then they won’t smoke. They think it’s a minor drug, that it won’t do much harm to them, but they don’t realize all the chemicals that are in it. We’re just trying to make them aware.”

The club is in partnership with the Carrollton Housing Authority and is funded by a grant through District 4 Public Health. The group is in favor of a $1 tax increase on packs of cigarettes for a simple reason that could save lives, said Brandolynn Marenco, abstinence education coordinator with the Housing Authority.

“If taxes are increased on tobacco products then people are going to be less likely to buy them and more likely to quit if the price is going up,” Marenco said.

House Bill 39, sponsored by Rep. Ron Stephens, who represents portions of Bryan, Chatham and Liberty counties in southeast Georgia, would raise the state taxes on each pack of cigarettes by $1, increasing the per-pack tax from 37 cents to $1.37.

Stephens said the state is in a major revenue crisis, with the Georgia General Assembly needing to plug a $1.1 billion in the state budget before the session ends sometime in late April or early May. An additional $1 on cigarettes would not only provide $350 million in new revenue, Stephens said, but it would also put the ever increasing burden of paying for health care for tobacco-related illnesses on the smokers themselves.

Under the current tax structure, Georgia’s cigarette tax generates about $237 million a year, but the state spends $537 million a year treating smoking-related illnesses in Medicaid patients alone.

Marenco said the problem is that cigarette companies target the younger generation in the hopes of getting them hooked an early age and then making them a customer for life. “They call our teens their future customers,” she said.The dangers in cigarettes are very much what’s not seen, in that they contain chemicals that are commonly understood to be harmful, Pappas said.

“I think that they [tobacco users] know that it’s not good for them, but most of them don’t know all the chemical things that are what makes them bad,” said club member Brandon Rowe. “But they are really bad.”