industries adding up to billions of dollars in business. 

 Manufacture, corporate headquarters, advertising, trans- 

 portation and other major business factions all make the 

 tobacco industry truly big business in New York. 



T 



he tax burden 



Since the inception of the tobacco excise, just over a 

 hundred years ago, about $62 billion in tobacco taxes 

 have been added to the United States Treasury. The 

 current federal rate on each package of cigarettes was 

 "temporarily" raised from seven to eight cents in 1952 

 and has remained at that rate since then. 



As the second most populous state in the country, 

 New York cigarette smokers pay a huge sum to federal, 

 state and local treasuries. In fiscal 1970, over 2.1 billion 

 packs were taxed bringing $174,472,000 to the federal 

 government and $261,698,000 to the state. The state 

 cigarette excise, now at twelve cents, was increased 

 from three cents in 1950 to its present rate. 



Along with the twelve cent excise. New York City 

 smokers must pay an additional municipal tax— four 

 cents per pack. And on June 30, 1971, another special 

 city tax ordinance went into effect in New York City 

 based on the "tar" and nicotine content of each individ- 

 ual brand. Cigarettes with more than 17 mg "tar" and 

 1.1 mg nicotine were taxed an additional four cents per 

 pack. Brands meeting one of these levels but not the 

 other, were to be taxed three cents, and brands within 

 both requirements were not subject to the additional 

 "tar"-nicotine tax. 



R 



e flections of the twenties - 

 cigarette bootlegging 



There was an immediate uproar from wholesalers, 

 retailers, consumers and the press. Although estimates 



