Proposition 10, approved by California voters in November 1998, added a 50 cent-per-pack tax to cigarettes and comparable tax to other tobacco products. A key provision of Prop. 10 was that the approximately $700 million collected each year was to be deposited in the California Children and Families Trust Fund Account and allocated towards providing funding for community health care, quality child care and education programs for young children and families; educating Californians via a statewide public education campaign on the importance of early childhood development; and providing assistance to pregnant women and parents of young children who want to quit smoking.

Why was this proposition necessary? In other words, if the citizens were in favor of the tax increase, why didn’t state legislators choose to enact such a change? Explain.

Why did proponents of Prop. 10 specify that funds generated by the tax increase would be allocated to public health and childhood development? Explain.

One goal of the proposition was to decrease smoking rates, especially among youths, and in the year following its implementation, youth smoking rates dropped 35% while adult smoking rated dropped .4 percent points. Despite these positive outcomes, can you think of any unintended consequence that might accompany the tax increase? Explain. (Hint: consider the chapters on obesity and smuggling)