Friday, April 17, 2009

How much money does the government make through tobacco taxation?

How much money does the government get through tobacco tax. If you could add information on the amount of money spent by the government on smoking related diseases also that would be great.

cheers.


In 2005, Federal govt got $7.7 billion, and states got $13 billion. The tax revenues are shrinking as states ban smoking. Colorado's new statewide smoking ban (in 2007) could cut tobacco tax revenue by about $14 million, putting a dent in health programs and other government initiatives, a state economist said.

The small tobacco taxation revenues are no match for the huge Tobacco-Related Monetary Costs in the USAHealthcare Costs. Total annual public and private health care expenditures caused by smoking: $89.0 billion âˆ' Annual Federal and state government smoking-caused Medicaid payments: $28.4 billion [Federal share: $16.2 billion per year. States share: $12.2 billion] âˆ' Federal government smoking-caused Medicare expenditures each year: $24.9 billion âˆ' Other federal government tobacco-caused healthcare costs (e.g. through VA health care): $8.7 billion

Your answer and the sources you cited were actually very helpful to me. I'm writing a paper about ways to use the new increase in the cigarette tax in a way that would aid the economy, or at least our healthcare system. http://answers.yahoo.com/question/accuse_write?qid=20081120000847AALIExM&kid=E5EmO3jgNXBtMfwSOFiA&s=comm&date=2009-04-15+11%3A27%3A17&.crumb=

$10.00 a carton.It is supposed to go to Medicaid and Medicare to cover the cost of smokers.

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