Famous People Smoking

Cigarettes are a significant source of tax revenue in many localities. This fact has historically been an impediment for health groups seeking to discourage cigarette smoking, since governments seek to maximize tax revenues. Furthermore, some countries have made cigarettes a state monopoly, which has the same effect on the attitude of government officials outside the health field. In the United States, cigarettes are taxed substantially, but the states are a primary determinant of the total tax rate. Generally, states that rely on tobacco as a significant farm product tend to tax cigarettes at a low rate. It has been shown that higher prices for cigarettes discourage smoking. Every 10 percent increase in the price of cigarettes reduced youth smoking by about seven percent and overall cigarette consumption by about four percent. Thus increased cigarette taxes are proposed as a means to reduce smoking. Coupled with the federal cigarette tax of $1.01 per pack, total cigarette-specific taxes range from $1.18 per pack in Missouri to $6.86 per pack in New York City. States also charge sizable settlement payments to tobacco companies, and the federal government levies user fees to fund FDA regulatory measures over tobacco. While these charges are not cigarette-specific, tobacco companies are ultimately forced to pass on those costs to their consumers. Lastly, most jurisdictions apply sales tax to the full retail price of cigarettes.
In the UK, many people now illegally import cigarettes, or buy those illegally imported, due to the increasing tax. A pack is less than half the price in some other countries, making illegal importers a large profit, while still providing comparatively very cheap cigarettes. The average price for 20 legal cigarettes is between £5.00 and £6.00, while imported packs are sold for less than £3; this is due to the fact that the large majority of the sale price of a legitimate pack is tax.