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money. That’s not the whole story.
Cigarette tax is always paid by both the producers and consumers. The same way, good laws and bad laws are always paid by both the capital owners and workers.
Assuming that smoking is good, which is not the case actually, eliminating cigarette tax will benefit both the producers and consumers. The same way increasing cigarette tax will hurt both the producers and consumers.
Because the producers are flexible, producers are relatively immune toward cigarette tax. The one taking the brunt of cigarette tax or cigarette subsidy, if such things exist, will be the inflexible customers that can’t just easily reduce smoking.
Another moral of the story is that what’s good for one tend to be good for the others.
It’s not true that workers can get more by hurting capital owners or via versa. Market mechanism will ensure that those who hurt the other side a lot will be the one paying for it.
Hence, both will be better of to just try to maximize productivity as a whole. The market will split the cake in a predestined way.
Because the workers are less flexible than capital owners, the workers will be the one benefited by increase productivity.