Scientific American quoted a figure of $5 billion as the annual cost of tobacco advertising.
Advertising in the United States is a tax deductible business expense. Corporate taxes work on a sliding scale up to an income of $18 million per year, after which a flat tax of 35 percent is levied.
Therefore, a savings of roughly $1.75 billion is enjoyed by tobacco companies.
This money must be made up through other sources in order to compensate the US treasury...mainly US taxpayers!
