Facts About Tobacco Taxes

Cigarettes are one of the most heavily taxed consumer products in the United States. Federal, state and local governments have a virtual monopoly on tobacco profits, collecting more money from the sale of cigarettes than retailers, wholesalers, farmers and manufacturers combined.

Visit www.nocigtax.com to learn what you can do to prevent Congress from raising cigarette taxes up to 156%.

Here are some of the facts about tobacco taxes today:

  • Since 1998, governments at all levels have collected more than $284 BILLION in cigarette taxes and payments from smokers.
  • Settlement payments, federal, and state and local taxes on cigarettes for fiscal year 2007 amounted to more than $34.3 BILLION.
    • Federal excise taxes - $7,307,440,000
    • State and local excise taxes - $15,087,691,000
    • State cigarette sales taxes - $4,764,730,000
    • Tobacco settlement payments - $7,200,000,000
  • The government per-pack profit from cigarettes in 2007 was $2.22 (or 50 percent of the cost of a pack of cigarettes), more than seven times the profit of R.J. Reynolds Tobacco Company.
  • In 2007, government pocketed more tobacco revenue per minute ($65,328) than the average smoker brought home in a year ($34,975).
  • Adult smokers make up about 19.7 percent of the population, yet smokers as a group are the only ones singled out for more and more "sin" taxes. Compare state cigarette excise tax revenue to tax revenue on beer and wine.
  • The median household income for an adult smoker is $34,975, compared to $49,429 for a non-smoker.
  • Cigarette tax increase proposals are made frequently - usually to fund new or expanded government programs.
    • Since 2001, 44 states have increased tobacco taxes.
    • Since 2000, federal taxes on a pack of cigarettes have increased 62.5 percent.
    • Since 1998, the average cost of a pack of cigarettes has more than doubled (from $2.09 to $4.43).

Click here to see more information on cigarette taxes and payments in your state.

See how much revenue has been collected so far this year from cigarette taxes and settlement payments.

 

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