Cigarette Taxes - Where Does the Money Really Go Essay

Cigarette Taxes - Where Does the Money Really Go - Essay Example (Chaloupka, 45-57) Yet suggestion to more increase cigarette taxes are prepared each year typically to fund new or delayed government programs not linked to tobacco control. Raising cigarette taxes are responsible for the insincerity of "politically correct" tax outline of adult smokers. The projected weighted average state excise tax on cigarettes as of December 2004 was 76 cents per packet, and the federal government toll an additional 39 cents per packet. Federal, state and public excise taxes on cigarettes for the financial year ending June 2003 was calculated to be more than $19 billion. (Jonathan, 2005) This is not a reasonable way to tax cigarettes or the adults who smoke them. It's time to end the insincerity of tobacco excise taxes and broaden the tax burden more moderately. During the period 1998-2005, federal, state and local governments received approximately $218 BILLION in excise tax and (MSA)/state expenses. Since 2001, 41 states have raised tobacco taxes, and suggestion to increase the federal excise tax on cigarettes, at present 39 cents per packet, are regularly being considered by Congress. Cigarette tax increase suggestion is made repeatedly, generally to fund new or prolonged government programs unrelated to tobacco control. ... Despite these description, further increasing excise taxes on cigarettes totals to "politically acceptable" tax profiling of adult smokers. Generous funding for tobacco control and youth smoking deterrence is by now being presented by the Master Settlement Agreement (MSA). The MSA affords industry funding particularly allocated for youth anti-smoking education programs and a national health research foundation. But is the MSA money being used sensibly By the end of fiscal year 2005, only three states had congregate or go beyond minimum strategy, as suggested by the Centers for Disease Control (CDC), for expenditure on tobacco control. According to 2005 U.S. General Accounting Office (GAO) facts, the 46 states that are gathering to the MSA spent less than five% of MSA taxes on tobacco control. Thirty-three of the 46 states depleted anywhere between zero and 10% of MSA duty on tobacco control. Slightly than the youth-smoking prevention and future Medicaid settlement for which it was proposed, MSA money is being spent on all from golf carts to bridges, roads and parks to state shortage decline, and, of course, on more administration.(Robert & Stephen, 78-84) Cigarette Excise Taxes and Funding Through Master Settlement Agreement (MSA) funds and levies from other related settlements, state governments have extraordinary funds on hand to them to reduce youth smoking. Future annual payments, stand upon inflation and cigarette sales, will persist in infinity. Although the MSA frequently state that "performance of tobacco-related public health measures," each state chooses how its MSA funds are spent. Tobacco companies do not have any