122 cIRCULAR 249, U. S. DEPARTMENT OF AGRICULTURE 
REVENUE FROM TOBACCO 
Tobacco, almost from its introduction into Europe, has been a 
favorite object for taxation. So far as is known all countries of the 
world derive revenue from it, either in the form of an excise laid upon 
the manufactured products, as in the United States; duties laid upon 
importation of the unmanufactured tobacco, as in the United Kingdom; 
or in the form of profits derived from the operation of State tobacco 
monopolies, as in France, Japan, and many other countries (28). 
In the United States the internal revenue taxes on manufactured 
tobacco products are not only one of the major sources of Federal 
revenue, but nearly half the States and several cities impose sales 
taxes on some or all tobacco products. 
Table 41 shows the taxes collected by the United States Govern- 
ment on specified products for 5-year intervals from 1915 to 1930 and 
annually from 1931 to 1940. 
It is a striking fact that the taxes collected from the sale of tobacco 
products, manufactured from about one-half of the tobacco produced 
in this country plus some imported tobacco, greatly exceed the gross 
receipts by American tobacco growers from the sale of their entire crop. 
Table 42 shows tobacco taxes collected by certain States for the 
fiscal years 1935 to 1941. 
It cannot be doubted that this multiplication of taxes—Federal, 
State, and city—has the effect of restricting in some degree the sale 
of tobacco products, and to a corresponding degree curtailing the 
possible income to tobacco growers. 
TABLE 41.—Internal Revenue receipts from tobacco taxes in the United States, 
specified years 
Venn Cigars | Cigarettes Chewing Cigarette | Miscella- 
edJunes0 Fo and Snuff papers | neous col-| Total 
| Large aril Large | Small smoking and tubes | lections 
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 
dollars dollars dollars dollars dollars dollars dollars dollars dollars 
191} =a 21, 174 729 56 20, 926 32, 198 DPA ty (ia (egeeee gE 2, 487 79, 957 
1920s 55, 424 992 232 151, 262 74, 664 6, 949 1, 542 4, 744 295, 809 
1925 =e 43, 347 731 109 225, 033 66, 922 6, 754 1, 189 1, 162 345, 247 
1930 21, 141 302 65 | 359, 816 60, 098 7, 542 1, 324 51 450, 339 
1931 18, 025 271 46 | 358,915 58, 377 7, 190 1, 442 10 444, 276 
19322 es 14, 208 227 32 | 317, 5383 58, 030 6, 846 1, 700 3 398, 579 
1933 11, 305 174 21 328, 419 55, 450 6, 405 958 7 402, 739 
19345=eeee 11, 633 173 638 | 349, 662 55, 299 6, 788 973 3 425, 169 
1933 11, 693 144 17 385, 460 54, 372 6, 512 976 5 459, 179 
19365222=— 12, 228 133 19 425, 486 55, 413 6, 603 1, 282 2 501, 166 
193 7e22e= 13, 247 145 19 | 476,027 55, 038 6, 660 1, 116 2 552, 254 
1938o2eaaee T2551 131 21 | 493, 433 53, 982 6, 679 1, 183 2 568, 182 
19393 12, 793 120 19 504, 037 54, 757 6, 932 1, 494 7 580, 159 
1940 12, 898 98 17 | 533,042 54, 384 6, 798 1, 279 2 608, 518 
12 698, 077 
19412 22s 13, 401 114 12 | ! 621, 279 54, 928 6, 900 1, 431 
1 Includes $4, 534, 000 cigarette tax imposed July 1, 1940. 
Compiled from reports of the Commissioner of Internal Revenue. 
