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Why Smoking is Still Legal

July 10th, 2008 · 547 Comments

The Tobacco industry really has it easy.  They have the best customers on the planet.  Their customers don’t just want their products, they need them.  Cigarettes are addictive and quitting the habit is hard to do.  So as long as big tobacco companies keep making what they make, they’re guaranteed to sell their products to addicted loyal customers.  After all look at the profits from these companies:

Tobacco Profits Phillip Morris Reynolds Lorillard Liggett

Source: http://www.hoovers.com/

It’s common knowledge that cigarettes are addictive and cause all sorts of health problems, so why are they still legal?  That’s easy, because they make lots of money for the government.  Have you seen how much tax is charged on cigarettes?  It can be as much as $2.50 per pack.¹   The total revenue from taxes in the United States in 2005 was $13.3 Billion.²  Who wouldn’t want that kind of money?  The amount of tax being charged is probably set to maximize profits for the government.  Any more tax and too many people would be forced to quit because they couldn’t afford it.  Any less tax and the government wouldn’t be making as much as they could be.


Cigarette Smoking Health

So why aren’t all drugs legal?  Illegal drugs have unwanted side effects.  When any of these drugs are taken they impair people from being productive.  The government needs a country full of capable workers so that workers can have thier paychecks and purchases taxed.  Cigarettes really are the perfect drug because not only do smokers pay the government for the cigarettes, but they are also able to go right back to work without a problem.

It gets even better for the government, because as soon as the smoker gets sick from smoking they’re going to have to go to the doctor.  The doctor is going to prescribe expensive medicine and treatment for the patient, which is all taxable.  It just works out all too well for the government.  Somehow, I don’t think that the government really care about the health of it’s people when it’s making $13.3 Billion from cigarette taxes.

¹ http://www.taxadmin.org/FTA/rate/cigarett.html

² http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=403

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Tags: US Economics

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