It does. That's the only way the tobacco companies would sign on the dotted line.....if they could pass the cost on to their "customers".
In that case the graphic is fraudulent and deceptive.
The cost to manufacture should be smaller and the "to government" obviously bigger.
still the government makes more from cigarettes than the cigarette companies do...
Cigarettes are one of the most heavily taxed consumer products in the United States. Federal, state and local governments have a virtual monopoly on tobacco profits, collecting more money from the sale of cigarettes than retailers, wholesalers, farmers and manufacturers combined.
Federal, state and local excise taxes on cigarettes for fiscal year 2004 amounted to more than $20.1 BILLION.
The government per-pack profit from cigarettes in 2004 was $1.88 (or 49 percent of the cost of a pack of cigarettes), more than 13 times the profit for R.J. Reynolds Tobacco Company ($1.88 vs. 14¢).
Government pocketed nearly $77 million a day from smokers from 1998 to 2004. In 2004, government pocketed more tobacco revenue per minute ($58,940) than the average working family brought home in a year ($41,754).
But excise taxes are just one source of government revenues from tobacco. After many years of intense national debate, the major issues regarding cigarette marketing and underage smoking were comprehensively addressed through a Master Settlement Agreement, signed Nov. 23, 1998, by the major U.S. tobacco companies and 46 states and a number of U.S. territories. The provisions of that settlement were similar to those in individual settlements previously reached with the other four states (Florida, Minnesota, Mississippi and Texas).
From 1998-2004, federal, state and local governments collected more than $196 BILLION in tax and Master Settlement Agreement/state payments.