How Much Does Tobacco Industry Make In A Year?
Ask yourself this question: How much does the tobacco industry make in one year? You can make up all the profits in one year if you want. Tobacco companies make millions of dollars in profit per year, but they don’t release their profit statement in any kind of public sector accounting book. In fact, there are very few places where they report their profits at all. This may be a direct result of their business structure.
Tobacco companies have many ways to bring in large profits, but they use many less efficient ways as well. One of these is through the high price that consumers pay for cigarettes. There are many taxes on tobacco products, and each tax raises cigarette prices. If you are a taxpayer, you probably understand that when a government levy is imposed on a business, the same business will raise its prices to cover the new costs so that it can stay in operation.
The cost to the consumer is passed on through higher cigarette prices. So not only do taxpayers have to shell out more money, the tobacco companies themselves have doubled their profits by increasing their prices! And all the while they continue to pollute our air and poison our children with second hand smoke. Are we really surprised by this?
So, what is the tobacco industry up to? In one billion and two hundred million cigarettes, you are paying almost one billion and six hundred million dollars in taxes. You are paying more than nine billion and eleven billion dollars in health care costs directly due to tobacco use every year. This comes out to about one and a half billion dollars in direct annual cost. And that doesn’t even include the indirect costs from diseases caused by tobacco use. That number is just for the United States.
Add the direct cost of heart disease, lung cancer, emphysema, and other diseases and add it all up and you’re looking at well over two hundred sixty billion dollars. That’s just in the US alone! But you are probably thinking, there’s a lot of cigarette smokers in the world so how can these companies charge those kind of dollars. The answer to that is simple. There are no taxes on tobacco in the US. Not a penny!
So why are there taxes on alcoholic beverages and tobacco? Why aren’t there taxes on the sale of tires, car parts, plane tickets, and similar items? Why don’t there be tariffs on the importation of Chinese steel products into the US, Indian rubber goods into the US, or any other item that has a likely US exporter? Because if those products were taxed, the tobacco industry would go out of business simply because they don’t make any money importing them into the country.
This is why all those taxes on tobacco are just unfair. They’re being given away. Who do you think makes more money, the guy who sells the stuff to you or the guy who makes it? The guy who sells it to you gets one hundred percent of the proceeds. That’s not fair!
There are many questions that people have about our health, and most of them have the same answers: they don’t make enough money! And that’s their mistake. Stop making that error and start asking yourself: How much does tobacco industry make annually?
How much, exactly, does the tobacco manufacturers make in the year 2021? When you buy a pack of cigarettes, you pay fifty cents. When you make one, you spend fifty cents plus a little more for the shipping. If you don’t make a ton, you probably fold it up and put it in the trash.
Divide fifty cents by twelve. You get dollars. Then multiply that by twelve and you get one measly dollar profit.
But when you do that, you make a few dollars off a few dozen packs. Multiply that by twelve and you might even come close to the million dollars in tax that they pay in a year. That’s a good bit of money. So, ask yourself this: How much does tobacco industry make annually?