tilis tax in 1864. Since the inception of tlie tobacco 

 excise tlic total \ield to the United States Treasury 

 througli June 1972 has been about $64 billion. 



The current federal rate on each package of 20 

 cigarettes is eight cents. It was "temporarily" raised 

 from seven cents in 1952. Louisiana consumers con- 

 tributed about $37 million of the $2.2 billion collected 

 on tobacco products by the Internal Revenue Service 

 in fiscal 1972, most of it from cigarettes. 



The cigarette excise imposed by the state of Louisi- 

 ana is an additional 11 cents per package. The original 

 tax on cigarettes in the state, four cents, became effec- 

 tive in 1925. It has been increased three times to the 

 present rate and has remained at that rate since Au- 

 gust 1970. In addition to the state excise, Louisiana 

 imposes a three percent sales tax which adds an addi- 

 tional penny to the price of Louisiana-purchased cig- 

 arettes. The total yield to the state from all taxes on 

 tobacco products since the inception of the first tobacco 

 tax in 1925 through June 1973 is estimated by tobacco 

 trade authorities at $861 million. 



The average retail price of a package of cigarettes 

 in Louisiana is 40 cents. A full 20 cents, or 50 percent 

 of the retail price, is destined to end up in federal and 

 state treasuries. Funds from cigarette and other to- 

 bacco revenues benefit all— smokers and nonsmokers 

 alike— and their effect is visible through construction 

 and maintenance of schools, hospitals, roads, bridges 

 and in community services. 



Much more could be said about the aggregate to- 

 bacco industry based in Louisiana. The essential facts 

 serve to demonstrate the magnitude and importance 

 of the industry in the "Pelican State." The historv of 

 tobacco's growth i\)vvv is both nnicjuc and fascinating. 



15 



