Antonio Serrano took a price hike in stride Wednesday for the cigarettes he bought at the Smoke Shop in Munster.
"I'll just have to pay it," said Serrano, of Chicago.
The single largest federal tobacco tax increase ever took effect Wednesday, bringing the per-pack federal tax on cigarettes to $1.01, up from 39 cents.
Other tobacco products, from cigars to pipes and smokeless tobacco, saw similar increases. The tax on chewing tobacco, for example, rose to 50 cents a pound from 19.5 cents.
The nearly $33 billion in revenue expected from the tax increase during the next 4 1/2 years is set to finance a major expansion of federally funded health insurance for children. That measure was signed into law this year by President Barack Obama.
Tobacco companies raised prices several weeks ago, partly to offset any drop in profits.
That's when the shock hit tobacco consumers, said Gary Tapley, general manager of a chain of Smoke Shop stores in Northwest Indiana.
"Were they upset about it? Absolutely," Tapley said. "Everybody was quitting. At least that's what they said."
Serrano, whose route driving a produce delivery truck takes him through Northwest Indiana, said the tax hike isn't enough to make him quit smoking.
"I may cut down," he said.
Many other smokers were inspired to quit, said Karla Sneegas, executive director of Smokefree Indiana, which advocates for smoking cessation.
"The minute manufacturers raised prices, we started seeing a flood of calls," Sneegas said. The number of calls to the agency tripled, she said.
More than 950 calls came in the first week after prices rose, compared to about 1,000 calls per month before that, Sneegas said.
"We know from research that cost is a major factor in motivating tobacco users to make that decision to quit," Sneegas said.
Generally, there's a 4 percent drop in adult smoking consumption for every 10 percent increase in price, Sneegas said.
"We want them to know we're here to help them," Sneegas said.
The agency provides help through the Indiana Tobacco Quitline, (800) QUIT-NOW.
