tobacco

In 1998 a law suit against tobacco companies gave $246 billion dollars over 25 years to 46 states. Different states distribute the money in different ways but not all the money goes to health prevention measures. South Carolina gave money to tobacco farmers and North Carolina spent money on tobacco production. Many states don't have any money coming in anymore because the secularized their future payments and put the money in the general fund. Today 40 states have spent less than half of the money on smoking prevention programs. Tobacco companies were allowed to raise prices by 35 cents per pack to help pay for the settlement. In short it was a transfer of money from consumers to states just like a tax.