Military's Deep Discounts on Cigarettes Costs Taxpayers Dearly

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Under U.S. Department of Defense (DOD) Rule 1330.09, U.S. military bases are supposed to sell tobacco products at no more than 5 percent less than the lowest price in surrounding civilian markets, but army and air force bases across the country are routinely violating this rule. An investigation revealed 15 military bases offer discounts on cartons of cigarettes that range from 10 to 40 percent. Those big discounts on cigarettes lead to big costs for taxpayers. Almost 40 percent of smokers in the military say they starting smoking after joining, and in 2008 alone the Veterans Administration spent over $5 billion treating chronic obstructive pulmonary disease, a tobacco-related illness. Smoking also affects troop readiness by decreasing physical fitness, motor coordination, stamina and increasing the amount of time it takes for wounds to heal. The DOD claims service members use tobacco to relieve stress, but Dr. Benjamin Gonzales, who served in the Air Force and Army for 24 years as a trauma doctor, says nicotine addiction causes the stress and using tobacco just reduces withdrawal symptoms. He says the relationship between tobacco use and price is well documented. An investigation showed that, to set prices, military pricing coordinators look at cigarette prices at other military bases instead of basing prices on those at local stores. For those who comply with Rule 1330.09, some of those "local stores" are as much as five hours away, or on an Indian reservations. When these pricing coordinators were asked if they would stop doing that and set prices as defense policy dictates -- by just looking at prices in the local convenience stores, retailers and gas stations -- they wouldn't give a straight answer.