The two main taxes that could be increased to make up for the revenue loss due to the ban of cigarettes:

- Motor Vehicles; especially luxury cars and gas guzzlers
- Alcoholic Beverages

There is also the point already raised by another respondent that the ban would substantially reduce cigarette smoking (except for smoking black market products) and with that, the decrease in health care cost associated with smoking. Thus, there’s no need to replace the lost revenue from cigarettes.

I’d approach that assignment from a slightly different angle. The US tried to ban alcohol during the period known as Prohibition. That generated a major black market for alcohol and was the primary driving force behind the growth of organized crime in the US.

Any attempt to impose a blanket ban on tobacco would have the same impact. There is already a noteworthy black market in high-tax areas such as New York City. Now imagine that nation-wide.

We don’t need to replace the tax revenue from cigarettes. It isn’t even enough to fund health care for smoking related illnesses. No smoking leads to no smoking related illnesses. Therefore no money is needed to pay for smoking related illnesses.

we could always tax fast food. pretty much every one eats it, and it horrible for your heath in the long run, like smokes. but its socially acceptable to eat at places like McDonald’s, so that would never fly.

what the tax is spent on, is up to individual states. hear in Arizona, most of it goes to early childhood education and welfare programs, plus anti smoking crusades. very little of it goes into medicaid.