Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - How do tobacco companies avoid bankruptcy? - The loose leaf tobacco industry (roll-your-own) was destroyed over night by President Obama, by virtue of raising the taxes on a 6 oz bag of loose-leaf tobacco by ridiculous amounts. Generic bags went from $7 to $35 just like that. Tens of thousands of people lost their jobs in the blink of an eye. Meanwhile, the Phillip-Morris lobbyists were spending money hand over fist in Washington D.C. when they heard about what was going on. As a result, they are now on top. Bankruptcy? Not for those with money and power. This is always how it has been done in Washington.