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Opinion: Giving Philip Morris $16 million in tax incentives ignores Big Tobacco’s public health impact

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Opinion: Giving Philip Morris  million in tax incentives ignores Big Tobacco’s public health impact

Philip Morris International recently announced that it is opening a manufacturing facility in Aurora to produce its Swedish Match ZYN nicotine pouches. The company is reported to receive $7.1 million in tax rebates from the City of Aurora, $4.5 million in state tax credits, and another $4.3 million in county tax credits.

Because of well-documented scientific research and data — spanning more than 75 years — we know the harmful effects tobacco and tobacco-related products have on a person’s health. Tobacco use is associated with 17 different types of cancer in addition to lung cancer. Products such as nicotine pouches are concerning because they are addictive and can lead to higher nicotine uptake. These products are especially appealing to young people — setting them up for a lifetime of addiction and poor health.

Despite the known detrimental health effects, jobs and tax revenue are common reasons cited for inviting these facilities into our communities and providing them with economic incentives. Many are unaware of the detrimental impact these health effects have on jobs and household income.

Let’s consider what happens when an employed person is diagnosed with cancer, which is strongly associated with tobacco use. It may surprise you to learn that, despite debilitating treatments, most employed people who are diagnosed with cancer continue to work. Many do so because they are afraid of losing the income and health insurance associated with their jobs, something that is ever more important now that they have a disease that can cost more than $100,000 a year to treat.

Oral cancer (or cancer of the mouth) treatment often includes surgery, chemotherapy, radiation, and reconstructive surgery, making work continuation a challenge. People who must face a trade-off between work and taking care of themselves are hard-working — often in good, high-paying jobs — and cannot afford to stop working because of the financial implications.

The thought of working while getting chemotherapy is hard for many of us to grasp. Research data show that not everyone can continue working, even with the threat of losing health insurance. Treatment side effects, jobs that require physical labor, low-paying jobs, and employers who do not provide accommodations, are all associated with job loss.

My colleagues and I estimated that the annual productivity loss from cancer cost the United States nearly $148 billion in 2020. Furthermore, cancer is the leading cause of medical bankruptcy, and the economic toll does not end with treatment or even with the end of life. Our research shows that six years after a cancer diagnosis, a person diagnosed with cancer remains financially worse off than someone without cancer and will make important sacrifices as a result.

The full effects of newer products, such as oral nicotine pouches, are not yet well-documented, but we know addictive products and their use can extend well beyond a single individual, impacting family members, caregivers, and the economy. It is crucial to recognize that economic development should not come at the expense of families’ economic security, health, or wellness.

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