How Much is the Government Making Off of Tobacco?

Tax Tips

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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  1. From a Financial Point of View, You smoke haters Can Not Afford for US Smokers to Quit and the overall system would break apart if it became illegal to grow, possess, or sell tobacco across the US. Why do you think it is still legal if the Fed and States don’t NEED the income?

    1. Smoking costs the US an estimated $290 billion a year in healthcare and lost productivity costs. The US can easily afford to end smoking. Smokers also cause 90,000 fires a year because of discarded cigarettes. That kills around 540 people a year and costs an additional $621 million in property damage. Tell us again why we can’t afford to end tobacco sales?

      The reason it hasn’t been outlawed is because there are just too many drug addicts out there. If tobacco had not been so prominent and had acceptance of advertising, use and promoting to kids (through cartoon figures like the old Joe Camel and through flavored products), then there wouldn’t be so many drug addicts. (Yes, smokers are drug addicts. Nicotine is a drug, one of the most addictive substances known.) But it’s highly misleading and an outright lie to say that we are dependent on the tax revenue from tobacco.

      So we would lose $25 billion in tax revenue, while gaining $290 billion a year in saved healthcare and productivity costs? That’s a bargain I’d take any day.

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