interesting tax math

[ashdaburned]

This is a copy of a blog i did on myspace.

So now it is July 5th. That's 17 days and have only smoked 4 cigarettes. All but the first one were simply to compare the two. In all honesty, cigarettes are NASTY. They taste bad, they smell bad, and do bad things to your health. I can now mow the yard without being out of breathe like before. Anyone who smokes or knows someone who smokes, please take a look at them. Information about E-Cigs. Please spread the word and this link to help inform those that don't know about these products and their benefits. I'm not saying that they will work for everyone, but please become informed about this product to try and make a healthier world. The FDA wants to ban them becuase no studies have been done on these. However they allow cigarettes a known killer to still be produced. And they are heavily lobbied by the tobacco companies. tobacco is paying TONS of money to the government. In this economy can you really believe that the nation really wants you to quite? Altria makes Marlboro, among others. They made $4.52 billion in revenue this quarter. (not profit.) They have about a 43% market share. So lets say total revenue is about 9 billion per quarter for tobacco as a total. Texas as of 2006 got $500 million a quarter from tobacco. And taxes have only gone up. The government makes almost as much as the tobacco company. (That 9 billion was as a whole, not for each state. So 500 million times 50 states equal 25 billion dollars per quarter so 100 billion a year. vs 9 times 4 = 36 billion per year) Now with states and nations scrambling to make money, do you really think they want you to quite using tobacco?

 

[happily]

You're preaching to the converted here...

 

[skyward]

need to recheck your math. tx as the second highest pop at 24.3mil or 12.6% of the 306mil total US pop.Assuming the same tax per pack that generates 500mil for TX it comes to 16bil for total US.

 

[Tin Cup]

A while back I did some Googling, and came up with the following. (I posted this before, but this seems like a good time to throw it back out there).

In the US there are about 300 million people. 75% of those are over 18. That's 225 million people.

20% of those are smokers (45 million) who average about a pack a day, at an average cost of 5 bucks a pack.

That's 225 millions dollars spent on cigarettes EVERY DAY. The local, state and federal governments get about half, and the other half goes to the tobacco companies.


The government is raking in over 100 million dollars EACH AND EVERY DAY from cigarettes, and so are the tobacco companies.

 

[skyward]

yeah took a little digging. 47.1 mil smokers,$2.21 works out to 104 mill per day total US,state and local or just shy of 38bil per year. of that USGOV gets 16bil ann.

 

[Tin Cup]

yeah took a little digging. 47.1 mil smokers,$2.21 works out to 104 mill per day total US,state and local or just shy of 38bil per year. of that USGOV gets 16bil ann.

Yup, I did a little rounding off, but we both came up with the same thing - the government makes a ton of money, and so does big tobacco. We just get the shaft.

Thank God for for these vaping things, by whatever name you wanna call them.

 

[Elendil]

I think your math may even be a little light. Most of major metro areas are at $7+ per pack. IL just increased cig taxes by $1 per pack (as did FL I believe). Since the population is concentrated in these metro areas, I'd bet it runs at $3 + per pack in taxes, although not all of it goes to the federal gov't, also the state and county as well...........

 

[Tin Cup]

I think your math may even be a little light. Most of major metro areas are at $7+ per pack. IL just increased cig taxes by $1 per pack (as did FL I believe). Since the population is concentrated in these metro areas, I'd bet it runs at $3 + per pack in taxes, although not all of it goes to the federal gov't, also the state and county as well...........

You're probably right, Elendil. Problem is, the only way to get the correct figures is to get them from the government, and they surely can't be trusted to tell us the truth!

I stayed conservative with things, so they get more than I said. Of course, the areas with the higher taxes is all LOCAL tax, not federal. That's the same no matter where you are.

Any way you slice it, vaping is still WWAAAAYYY better than analogs!

 

[ashdaburned]

The Texas tax numbers were from 2006. Taxes on cig's in many states have jumped very high. And yes, i've read somewhere that the taxes per pack now are like $3.00 per pack. In 2006 taxes per pack in tx was around $1. Which is why they used to be like $3 a pack for marlboro's, atleast around here. It was rough math, (And just taking hints from how the media skews the truth to prey on those who do not think.) I kinda thought that the large difference from 2006 to now in taxes would make up for inaccuracies because of population. However even by halfing it to the 39 billion dollars, that is still a huge chunk of money. Plus the manufacturer has to also pay tax per so many cigarettes that brought to the state to sell. So that is even more money.

On a side note, the question of them banning it until they can figure out how to tax it is not a valid argument unfortunately... All that would be needed, which will probably be what will happen, is that nicotine in a liquid form with intent to use in a PV be charge so much tax per mg. By doing it this way it would then not effect any previous nicotine products.

I know that it is preaching to the converted, but i've seen lots of talk about how the gov't doesn't want to lose any tobacco tax dollars. However i have never seen any numbers to this on this forum so i felt it to be useful to be here. It was also thrown together shortly before getting ready for work so was sloppy, I appologise for that, but i was looking for impact as i said.

*EDIT* BTW, just checked, in 2006 17.75 billion packs of cigarettes were sold. at that tiome the average state taxes were 81.6 cents. so that's 14.484 billion dollars spread amongst the states. Now federal tax increased to 1 dollar. so that's 17.75 billion dollars. At the least that's about 32 billion. So my math was WAY wrong (again i blame it on the media skewing retaliation.) But with some states considering legalizing marijuana so they can get taxes from that as well says something. They need money. Any money they can get. Whether its 100 billion or 32 billion. Our nation needs money.

Source: http://usda.mannlib.cornell.edu/usda/ers/TBS//2000s/2007/TBS-04-24-2007.pdf

 

[Sar]

There is an interesting tax revenue breakdown per state:

NoCigTax.com Cigarette Tax Facts - State Cigarette Taxes

We are talking serious cash here. It would be very difficult for our politicians to give that up...