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Investors seem to be betting that e-cigarettes will take share away from traditional tobacco goods, which are considered far more of a health hazard

Taxing tobacco is popular with lawmakers of both parties because the data shows it prices many teens out of the market, it brings in the needed revenue for state governments, and gives smokers a strong financial incentive to quit, saving millions on Medicare and Medicaid costs

Szymanczyk said that given Marlboros price gaps and its market share gains indicate that the status of things right now seem to be acceptable to consumers. The company said it earned $813 million, or 39 cents per share, compared with $589 million, or 28 cents per share, a year ago