We should raise the price of cigarettes, drastically…

In 2022, the US government made $11.3 billion in taxes on tobacco. Sounds like a good revenue stream, right?

In that same year, we spent $240 billion in direct healthcare costs treating the ailments due to smoking. That cost is 21x more than the tax revenue.

When you include direct healthcare costs plus loss productivity in premature deaths we spent or lost over 600 billion, including 480,000 deaths per year. That cost is 53x more than the tax revenue.

So, this is obvious right? Then why don’t we do this?

• Philip Morris International: $35.74 billion in net sales

• British American Tobacco: $33.91 billion in net sales

• Imperial Brands: $22.84 billion in net sales

• Altria Group: $20.46 billion in net sales

Tobacco companies are able to make large profits because they have high profit margins on their sales. For example, in 2018, Imperial Brands reported a 46% profit margin on global operating profits.

A 46% profit margin on a product that is poison, marketed to children, and costs us taxpayers billions. 

We can do better, America!