How Much is the Government Making Off of Tobacco?
It’s no secret that the government taxes our spending– in fact, sales tax is one of the main ways that the government brings in money. But there are a number of other items that have their own additional taxes imposed, whether at the state or federal level. And, when it comes to cigarettes, the consumer pays both. Would it be right to call this a tax on one’s vice, or sin? While we don’t claim to be any moral authority, the figures and statistics are quite interesting.
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I wonder what this infographic would look like if it compared this data to the money spent on health care and other things that are caused by tobacco consumption.
Dan,
That is a very good idea. I will share it with our team. Thanks for stopping by!
Chelsea from TurboTax
Chelsea, I would recommend you read my short and well-referenced online piece, “Taxes, Social Costs, and the MSA” at:
You will find a well referenced argument that smokers are actually subsidizing the lifetime healthcare costs of NONsmokers — so the reverse of the intent of Dan’s suggestion is likely to be what you’ll eventually find.
I’d also suggest including sales taxes and the MSA tax on smokers. I believe those add about another ten billion dollars or so in extra taxes that smokers are contributing to everyone else.
Michael J. McFadden
Author of “Dissecting Antismokers’ Brains”
Good question Dan. I say tax it another couple dollars to fund the Reform Costs. I’d also legalize marijuanna and tax the daylights out of it too help.
But with all this money coming in how much goes right back out to pay for lung cancer treatments, heart disease, in home & assisted living costs for people on oxygen and 50 other health problems caused by smoking ?
I never understood this about Obamas health care reform. He said the uninsured were costing the health care industry billions or however much every year, so now everyone is suppose to have insurance or be fined ?
What about himself ? He is a smoker and still smokes, what about the billions of $$ is costs to care for all of them ?
Bob, I’d suggest the same reading for you that I just suggested above for Chelsea. If you have any specific, substantive criticisms of anything I wrote there please feel free to share them here: I promise I won’t mind, and I’ll try to stop back to respond.
- MJM
How about including the money saved on healthcare by so many smokers dying young?
In the UK they did this and the savings on geriatric care and pensions outweighed the extra healthcare required by live smokers many times over.
Obviously a different situation in the US without state funded healthcare and pensions.
The problem with comparing to health care costs associated with tobacco usage is a futile exercise since a majority of health issues attributed to smoking are subjective. If a person dies of lung cancer and does not smoke it is attributed to genetics. Now if that same person smoked then it would be attributed to cigarettes. The whole campaign against smoking is simply a ruse to put more money in the government pockets. It’s an easy target.
Dan:
It has been done. Fact of the matter is, only a very small percentage of cigarettes taxes are actually allocated for the “intended purpose”. In fact, it’s the major reason there’s an unethical fight and smear campaign being launched against the “electronic cigarette” despite the many studies showing they are safe. They are seriously cutting into the sin tax profits states are misappropriating.
If only we’d used those brainwashing resources against the fast food industry instead of tobacco. Smokers are healthier than the obese, and that’s a fact Jack. Gluttony kills.
It would be nice to see the unprecedentedly huge settlement monies included in the infographics too. These lawsuit monies were to go toward healthcare. Remember?
Who cares … seriously. Its time to quit smoking, you are doing nothing but wasting vast amounts of cash on something that is slowly killing you.
My grandfather quit smoking after 30+ years of it and I quit after 15 years. If we were both able to do it without going back, you can do it too.
and people wonder why they are trying to ban electronics cigs. cant tax those, no tobacco.
I think the first graphic is missing at least 3 zeros on the Y axis. I suspect the numbers are billions, not millions. The graphs that follow would tend to support that theory.
Mark
The problem is, it is nobody’s damn business what I take into my body. Rat poison or cigarettes. Keep your hands off my body! It is a supposidly free country, but don’t try to sit in your back yard smoking a joint, or they will arrest you. The only reason that cigarettes and alcohol are still allowed is that they can collect these “sin” taxes on them. It is time to take the government out of our personal lives. It’s time we wrested control of our bodies back from the government.
In the first graph, looks like Federal Collections should be read and State Collections should be blue
At least when I drink you don’t have too swallow. When you smoke I’m forced to breathe in your habit.
Take it outside please.
The whole idea behind tobacco tax is to encourage people to smoke less but over time the real reason seems to have disappeared and the tobacco tax was seen as a way to generate more revenue for the state.
This represents another good idea that took on a different path due to politics.
South Carolina is now $.57 on a pack. No more cheap Clemson smokes!
It looks like state governments are as addicted to cigarette taxes as smokers are to cigarettes! If not, why wouldn’t they ban such a dangerous product?
they might be addicted to the money…but all the money is going to pay for the medical Heath of people who smoke.
They mat be addicted to the money…but most of it is going toward paying for the health problems of smoking
Cigarettes exist for taxes and population control…all the anti-smoking talk and campaigns are for show.. If the govt wanted to it could outlaw them tomorrow but then they’d go broke and not enough people would die from smoking related causes…
Consider ourselves… “Free Range Humans”
Number of cigarettes smoked annually in the U.S.=331 BILLION.
331 billion divided by 20= 16.5 BILLION packs.
16.5 billion packs times $1.0066=$16.6 BILLION in federal tax.
Why does your graph show tax dollars in the millions? And forgetting all about state taxes;what is our federal government doing with all that money?
obviously U.S. and other countries trying to extort money from china through tobacco and carbon emission taxes,both are the wrong way to do business and the U.S. is suffering the consequences of self taxation.Coal a U.S. natural abundant resource could produce power for the next 1000 years,using clean coal technology,but coal power plants are being demolished and the only backup plan is poisonous nuclear power,with no 100,000 year storage or containment plan.Gas and cigarette prices taking what little money consumers have to spend
How many of you holier than thou people do everything perfectly. You bash smokers while 95% of you have driven over the legal drinking limit! The point is not the smokers the point is the tax! They can tax us as much as they want on whatever item they feel like!
Sorry! I didn’t realize just how old this thread was. Most of the people I asked questions of will probably not even see them so if they don’t respond it shouldn’t be held against them! I’ll still check back though.
- MJM
Insurance cost, Please!!! Dozens of people at my work are playing the ” Medical Leave ” game, none of them smokers but thats OK with you! I have stopped smoking and the most rewarding thing is not health or money saved but the tax dollars you whinny non smokers are going to have to suck up from the tax dollars that arent there from my pack of cigarettes! Puff on that one bub!
Whats sad is that people can’t see what they are doing!!! All there problems that are happening!!! Most of the deaths that happen from smoking are from 2nd hand smoking. It’s really sad! It’s almos suiside!!! Your going to die sooner or later!!! Your killing your self!!!
Actually Jed, when you drink, I am forced to ingest the highly volatile and carcinogenic alcohol fumes evaporating from your drink. You don’t see or smell them, but they ARE there, and using the Antismokers’ arguments of “No Safe Level!” then drinking should obviously be banned from public settings like bars and restaurants. After all, why should those poor workers be forced to work under such conditions?
See my writing at the British Medical Journal on this: Google these four terms without quotes and read my “Secondary Smoke, Alcohol and Deaths” there:
martini mcfadden USDHHS viscusi
Also: regarding the repeated claims here that cigarette taxes are going to cover the health care of smokers, that is simply false: Smokers are actually subsidizing the health care of NONsmokers. To see the fully referenced argument on that, Google:
Pflicht viscusi mcfadden
and read “Taxes, Costs, and the MSA.” If anyone has any specific, substantive criticisms or questions about either piece, feel free to share them here: I’ll be happy to respond!
- MJM
It’s difficult to find knowledgeable people on this subject, but you seem like you know what you’re talking about! Thanks
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There making a RIDICULOUS amount off tobacco!! We all know it!
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