How Much is the Government Making Off of Tobacco?

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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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91 responses to “How Much is the Government Making Off of Tobacco?”

  1. Yes Nicotine is a is alcohol..yet you can go to rehab..get disability and retraining in a new work field A friend went to rehab and got training in being an auto mechanic..and they bought him a brand new giant 6 foot tall tool box full of every tool imaginable… all paid for by the us government for alcohol…yet there is no programs for Cigarettes…so yeaghh if that 25 billion is not so important..why don’t they have rehab for smokers..withdrawals are the same in alcohol…tobacco..and drugs..

  2. 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?

    • 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.

      • The health care is an industry just like any other industry & we pay for the health care so when you give all these numbers & estimates about” us” saving money if smoking was outlawed i don’t believe that anything would change because you are right about nicotine being a drug & smokers are drug addicts. The government knows that also & they DO depend on that $25 billion & it is just like booze ……..they KNOW people will NEVER quit so they cash in & depend on peoples addictions to run this government & whatever programs or pockets they are padding with that $25 billion. What you said is idealistic & “oh what a wonderful world this would be” kind of thing BUT…….it is not realistic at all & the motive behind raising the smoke tax is not to incourage smokers to quit …….no way! They want MORE MONEY & they know they will get it. Don’t be blind to their motives because it is ALWAYS ABOUT THE MONEY.

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