How Are Cigarette Taxes Spent by the Government?
The Government Distributes Taxes When a consumer purchases a pack or carton of cigarettes, federal and state taxes account for a considerable portion of the price. When the federal government receives tax revenue from cigarette sales, it spends the money in several venues. First, it distributes a portion of the funds back to the individual states; since many states depend on federal subsidies to fund a number of their social works programs, the tax dollars eventually filter back into state parks and local communities. With the remaining funds, the federal government funds health-related programs deployed on a national level; some of these programs include tobacco and general health education, cancer research grants and military health benefits. States Use Funds for Health Care While the federal government collects taxes from cigarette sales, state governments generally collect considerably more funds each time a consumer purchases cigarettes. According to a 2008 article in The New York
